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What is the break-even probability from granting credit

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Reference no: EM133112600

Angel Corp. produces a product that generates repeat orders on an annual basis. Their product has a current price of $2,500 and a current cost of $2,100. The firm uses a 15% opportunity cost of capital. Due to the product's high cost, there is a 17% chance that each new customer will default on payment. What is the break-even probability from granting credit under these conditions?

Reference no: EM133112600

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