Highest possible default probability for the customer

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Reference no: EM131896822

Your company is considering granting credit one time for a sale to a new customer. your variable cost per unit $120, the current sales price per unit is $140, and the monthly required return is 3%. unfortunately, you aren't confident in your assessment of the customer's credit risk. What is the highest possible default probability for the customer so that your company would still provide credit?

Reference no: EM131896822

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