Ajax Predicts That If a Customer Pays on the First

question 80

Multiple Choice

Ajax predicts that if a customer pays on the first sale, it is assured that it is a reliable customer.As such, it expects that customer to generate a net profit of $350 per year for 12 years.Ajax calculates present value with a 15% rate of return.There is a 90% probability that Ajax will secure a reliable customer.However, if the customer defaults, Ajax will have to incur a loss of $500.Determine the expected benefit if credit is granted.

• A)$1,657
• B)$1,757
• C)$1,857
• D)$1,957

Understand the process and significance of fungal reproduction, including spore production.

Appreciate the ecological diversity of fungi and their roles in different environments.

Recognize the association between fungi and diseases in humans and other species.

Understand the unique adaptations of fungi for nutrient absorption and distribution within their structures.

---

Definitions:

Depreciation Expense

The allocation of an asset's cost over its useful life, reflecting the asset's consumption, wear, and tear.

Dividends Paid

The total amount of earnings distributed by a company to its shareholders as a reward for their investment.

Inventory Increase

This occurs when there is a rise in the quantity or value of goods held by a company, signaling a buildup of stock.

Amortization of Patents

The systematic reduction of the financial value of a patent over its useful life, reflecting its consumption and obsolescence.