What would be the net present value of the decision

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Question 1: You are trying to attract new customers that you feel could become repeat customers. The average price of the items you sell is $49 with a $35 variable cost. Your monthly interest rate is 1.2 percent. Your experience tells you that 5 percent of these customers will never pay their bill. What would be the net present value of this decision?

Select one:

Option A. $989

Option B. $979

Option C. $1,073

Option D. $1,108

Option E. $1,023

Reference no: EM132500012

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