5. 22. Evaluating credit policy [LO 20.2] In Problem 21, assume that the probability of default is...

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5. 22.

Evaluating credit policy [LO 20.2] In Problem 21, assume that the probability of default is 15 per cent. Should the orders be filled now?

Assume the number of repeat customers is affected by the defaults. In other words, 30 per cent of the customers who do not default are expected to be repeat customers.

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