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

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Definitions:

Bureaucracy

denotes a complex organizational structure with fixed rules and a hierarchy of authority, typically seen in governments and large institutions.

Rule-bound

Pertains to systems, processes, or behaviors that are strictly governed by established rules, regulations, or guidelines.

Bifurcated Consciousness

A term describing a mental state of someone who simultaneously maintains two conflicting cognitions, often relating to the dual roles of women in modern society as workers and caregivers.

Post-structuralist Perspective

An analytical approach in sociology and literary theory that suggests structures and social identities are complex and unstable, shaped by power, knowledge, and discourses.