Analysis suggests that Jumpda LLC will pay a bill with the probability of 23.00%. They want to order 2,000 boxes of kitty litter at a net price per box of $46.00. Each box costs your company $27.00.
You believe that the buyer (Jumpda LLC) will be a regular customer in the future, what is the expected Net Present Value of extending this credit? Use a discount rate or required rate of return of 5.00%.
a. -39832
b. -32840
c. 381620
d. 133220
e. 572780