Look back at the previous problem, but now suppose that if a customer defaults on a payment,

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Look back at the previous problem, but now suppose that if a customer defaults on a payment, you can eventually collect about half the amount owed to you. Will you be more or less tempted to pay for a credit check once you account for the possibility of partial recovery of debts?
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Fundamentals of Corporate Finance

ISBN: 978-0078034640

7th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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