Assume a Sales Price of $119 Per Unit, a $76

question 20

Multiple Choice

Assume a sales price of $119 per unit, a $76 per unit variable cost, an average default rate of 3 percent, and a monthly interest rate of 1.25 percent. What is the net present value of a new repeat customer who never defaults on his or her payment?

• A) $5,733
• B) $3,364
• C) $2,617
• D) $8,817
• E) $9,520

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Definitions:

Superfund Statute

Federal law aimed at cleaning up sites contaminated with hazardous substances and pollutants; formally known as the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

Strict Liability

A legal doctrine holding individuals or entities responsible for damages or harm caused by their actions, regardless of intent or negligence.

Potentially Responsible Parties

Potentially Responsible Parties (PRPs) refer to individuals or entities that may be liable for cleaning up contaminated sites under environmental laws such as the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

Comprehensive Environmental Response

Part of a broader legislative framework aimed at addressing pollution and contamination emergencies.