Ashley Company is considering the credit application of a retail customer who is expected to buy $1000 worth of merchandise every month. The cost of these goods will be $800. The customer is expected to pay after 30 days every month. However, there is a 10% probability of default each month. In case of default, the company will recover 50% of the unpaid bill after 3 months. The cost of capital to the company is 15% per annum. Should Ashley extend credit to the customer?