You Have the Opportunity to Make a One-Time Sale If

question 86

Multiple Choice

You have the opportunity to make a one-time sale if you will give a new customer 30 days to pay.You suspect there is a 10 percent chance this person will never pay you.The sales price of the item the customer wants to buy is $289.Your variable cost on that item is $156 and your monthly interest rate is 1.75 percent.Should you grant credit to this customer? Why or why not?

• A)yes; because the NPV of the potential sale is $113.05
• B)yes; because the NPV of the potential sale is $99.63
• C)no; because the NPV of the potential sale is -$133.00
• D)no; because the NPV of the potential sale is -113.05
• E)no; because the NPV of the potential sale is -$89.65

---

Definitions:

Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Acculturation

The process of cultural exchange and adaptation that occurs when two or more cultures come into direct continuous contact, leading to changes in the original cultural patterns of either or both groups.

Cultural Evolution

Cultural change over time- not to be confused with progress.

Ethnocide

The violent eradication of an ethnic group's collective cultural identity as a distinctive people; occurs when a dominant society deliberately sets out to destroy another society's cultural heritage.