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(Solved): ABC is deciding if credit should be extended to its customers. It has determined that there is a 88% ...



ABC is deciding if credit should be extended to its customers. It has determined that there is a 88% probability that it would collect the full payment from a credit sale in one month. The receivable is financed at an APR of 6.30%. On credit sales of $3,000 per unit, the present value of costs are expected to be 75.00% of the sales price. What is the present value of the expected profit on the sale of each unit?

a. -$373.79 b. $321.55 c. -$13.79 d. $233.54 e. $376.21



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