Thursday, January 5, 2012

Who is the most knowledgeble .. lets see who can do it ?

the branding iron company sells its irons for $50 a piece wholesale. production cost is $40per iron. there is a 25% chance that wholesaler q will go bankkrupt within the next year. q orders 1000 irons and asks for 6 months, go bankrupt within the next year.. q orders 1000 irons and asks for 6 months credit. should you accept the order ?? ume a 10%per year discount rate, no chance of a repeat order, and the q will pay either in full or not at all.

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