Assume a sales price of $119 per unit, a $76 per unit variable cost, an average default rate of 3 percent, and a monthly interest rate of 1.25 percent. What is the net present value of a new repeat customer who never defaults on his or her payment?
A) $5,733
B) $3,364
C) $2,617
D) $8,817
E) $9,520

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The Answer of Assume a sales price of $119 per unit, a $76 per unit variable cost, an average default rate of 3 percent, and a monthly interest rate of 1.25 percent. What is the net present value of a new repeat customer who never defaults on his or her payment?
A) $5,733
B) $3,364
C) $2,617
D) $8,817
E) $9,520

Assume a Sales Price of $119 Per Unit, a $76