Air Spares is a wholesaler that stocks engine components and test equipment for the commercial aircraft industry. A new customer has placed an order for eight high$-$bypass turbine engines, which increase fuel economy. The variable cost is $$3\mathrm{.}4$ million per unit, and the credit price is $$3\mathrm{.}705$ million each. Credit is extended for one period, and based on historical experience, payment for about $1$ out of every $100$ such orders is never collected. The required return is $4$ percent per period. The customer will not buy if credit is not extended.

a$.$

What is the NPV per engine purchased on credit? $($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

b$.$ What is the break$-$even probability of default in part $($a$)?($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$-1.$ Suppose that customers who don$$t default become repeat customers and place the same order every period forever. Further assume that repeat customers never default. What is the NPV per engine purchased on credit? $($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

c$-2.$ Assuming the customer becomes a repeat customer, what is the break$-$even probability of default? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$