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where are these numbers coming from?? like 150 and 100 Should credit be granted to a customer wishing to purchase a $2,000 item that has
where are these numbers coming from?? like 150 and 100 Should credit be granted to a customer wishing to purchase a $2,000 item that has been marked-up 50% over cost if the probability of collection is only 65%? Assume all cash flows are discounted to present value. 0 Yes; the expected profit is $150.00 Yesthe expected profit is $33.33 No; the expected loss is $33.33 O No; the expected loss is $150.00 Expected profit = 65($2,000 x (50/150)) - 35($2,000 X (100/150)) = 65($666.67) - 35($1,333.34) = $433.34 - $466.67 = $33.33
where are these numbers coming from?? like 150 and 100
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