Xian Corporation Predicts That If a Customer Pays on the First

question 27

Multiple Choice

Xian Corporation 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 $700 per year for 10 years.Ajax calculates present value with a 9% rate of return.There is a 70% probability that Ajax will secure a reliable customer.However, if the customer defaults, Ajax will have to incur a loss of $800.Determine the expected benefit if credit is granted.

• A)$2,804
• B)$2,904
• C)$3,004
• D)$3,104

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Definitions:

RLC Parallel Circuit

An electrical circuit in which a resistor (R), an inductor (L), and a capacitor (C) are connected parallelly, affecting the impedance and behavior of AC circuits.

RLC Parallel Circuit

An electrical circuit that contains a resistor (R), inductor (L), and capacitor (C) all connected in parallel, affecting the overall impedance differently from a series circuit.

Applied Voltage

The voltage that is applied across a component or circuit from an external source, driving current through it.

Parallel Resonant Circuits

Circuits where components are connected in parallel, bringing the circuit to resonance at a specific frequency where the inductive and capacitive reactances are equal in magnitude but opposite in phase.