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Kiosk in the local mall for a period of three months

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You are considering renting a kiosk in the local mall for a period of three months. Any sale you make will be a one-time sale. The probability that you will collect payment on a credit sale is 92 percent. The product you want to sell has a variable cost of $3.76 and a sales price of $4.99. The monthly interest rate is 1.35 percent. Should you offer people 30 days to pay? Why or why not?

Group of answer choices

No; because the NPV of a credit sale is -$.08

Yes; because the NPV of a credit sale is $.09

Yes; because the NPV of a credit sale is $.77

No; because the NPV of a credit sale is -$.02

Yes; because the NPV of a credit sale is $1.03

Reference no: EM132497735

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