A seller is considering extending trade credit to an existing customer that buys on cash terms. The customer has just pl

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A seller is considering extending trade credit to an existingcustomer that buys on cash terms. The customer has just placed asales order (cash terms) for immediate delivery of 30 units at asales price per unit of $10. The customer states that they willincrease their sales order by 20% if they receive a 90-day creditperiod. Variable costs are $3 per unit and involve an immediatecash outflow. If the seller has an annual opportunity cost rate of7.3%, what is the NPV of extending credit to the customer?
Select one: a. -$35.63
b. $35.63
c. $210.00
d. $245.63