Solved: Npv of granting credit, If the investment in the sale is $12,000 and the opportunity cost, Finance Basics

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Npv of granting credit

Problem:

NPV of granting credit- A credit sale of $15,000 has a 95% probability of being repaid in two months and a 5 % probability of complete default. If the investment in the sale is $12,000 and the opportunity cost of the funds is 15% per year. What is the NPV of granting credit?

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