Cast Iron Company, on each nondelinquent sale, receives revenues with a present value of $$1,270$ and incurs costs with a value of $$1,035.$ Cast Iron has been asked to extend credit to a new customer. You can find little information on the firm but you believe that the probability of payment is no better than $0\mathrm{.}78$ and that there will be a repeat order in one year if payment occurs.Problem $31-18$ Credit policy

Cast Iron Company, on each nondelinquent sale, receives revenues with a present value of $$1,270$ and incurs costs with a value of

$$1,035.$ Cast Iron has been asked to extend credit to a new customer. You can find little information on the firm but you believe that the

probability of payment is no better than $0\mathrm{.}78$ and that there will be a repeat order in one year if payment occurs.

If the discount rate is $11\%,$ calculate the minimum probability of payment on the repeat order at which credit can be extended.

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

Answer is complete but not entirely correct.

If the discount rate is $11\%,$ calculate the minimum probability of payment on the repeat order at which credit can be extended.