The NPV is positive, therefore, this order can be placed.
<h3>How to calculate the NPV?</h3>
The calculation of probability of default will be:
= 1 / 200 = 0.005
We use NPV formula to find out whether the order should be filled or not
NPV = -Variable cost per unit +[(1-π)(price of equipment/1+percentage of return)]
= -$1.6 million +[(1-0.005)($1.725m/1.018)]
= -$1.6m + $1.6860
= 0.0860 million
As NPV is positive this order can be placed.
Learn more about NPV on:
brainly.com/question/18848923
#SPJ1
Slope: (y2-y1)/(x2-x1)
(-11-1)/(6-(-3)) = -12/9 = -4/3
The slope is -4/3
Rosa is 24 years old and Amy is 10 years old. hope this helps!
