Based on this information what is the npv to crisps of


Crisps has received an order for 10000 bags of potato chips from BigBag. Crisps views BigBag to be a one-time customer. Crisps sells its large bags of potato chips for $1.90 each, and calculates its internal cost for the product at $1.45 each.

Market research estimates that there is a 25% chance that BigBag will pay in full what it owes.

Based on this information, what is the NPV to Crisps of offering credit to BigBag?

$

Place your answer to the nearest dollar. Do not include a dollar sign or comma.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Based on this information what is the npv to crisps of
Reference No:- TGS02719197

Expected delivery within 24 Hours