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

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Definitions:

Mental Diagnoses

The identification of psychological disorders and conditions based on symptomatology and clinical assessment.

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Medical Diagnoses

The process of identifying a disease or medical condition from its signs, symptoms, and test results.

Disciplinary Actions

Measures enforced by authority figures or institutions to correct behavior or enforce guidelines and rules.