What is the npv of extending credit to the new customer


Question:

Controller Kim Johnson is considering a $1,000 order from a new customer. The cost of filling the order is $950. Jan estimates collection costs are $20. The customer will pay in 60 days. If the appropriate cost of capital is 18%, what is the NPV of extending credit to the new customer?

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Finance Basics: What is the npv of extending credit to the new customer
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