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Empire Corporation has a client who wants to purchase $800,000 of goods on credit. Empire thinks that the client has a 98% probability of paying

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Empire Corporation has a client who wants to purchase $800,000 of goods on credit. Empire thinks that the client has a 98% probability of paying the full amount in 4 months and a 2% chance of a complete default (paying no cash at all). Assume an investment of 75% of the amount, made at the time of the sale, and a required return of 12% APY. Please click on the following link to access a blank Excel-type worksheet: Blank XLS Worksheet.xls Click to open: O $148,213.71 O $152.489.01 $154,935.86 O $156,776.93

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