The decision to grant credit is a straightforward NPV decision that can be improved by additional information

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The decision to grant credit is a straightforward NPV decision that can be improved by additional information about customer payment characteristics. Additional information about the customers’

probability of defaulting is valuable, but this value must be traded off against the expense of acquiring the information. LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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