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 400 units at asales price per unit of $100. The customer states that they willincrease their sales order by 10 units if they receive a 90-daycredit period. Variable costs are $65 per unit and involve animmediate cash outflow. If the seller has an annual opportunitycost rate of 7.3%, what is the NPV of extending credit to thecustomer?
Select one:
a. -$374.95
b. $374.95
c. $13,625.05
d. $14,000.00