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b. What is the break-even probability of collection? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Break-even probability -1. Now suppose
b. What is the break-even probability of collection? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Break-even probability -1. Now suppose that if the customer pays this month's bill, they il place an identical order in each month indefinitely and can be safely assumed to pose no risk of default. Calculate the present value of the sale. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value c-2. Should credit be extended? Yes No d. What is the break-even probability of collection in the repeat-sales case? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) r Break-even probability
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