(Answered) Crisps has received an order fornbsp16500nbspbags of potato

Finance

Crisps has received an order for 16500 bags of potato chips from BigBag. Crisps views BigBag to be a one-time customer. Crisps sells its large bags of potato chips for $1.90 each, and calculates its internal cost for the product at $0.95 each.

Market research estimates that there is a 30% chance that BigBag will pay in full what it owes.

Based on this information, what is the NPV to Crisps of offering credit to BigBag?

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