What is the expected profit from a sale

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Question - A firm has a present value of revenue from a sale to a customer of $2,150. The present value of cost of goods sold is 92% of the sale price and the probability of the customer defaulting is 25%. Given the above information, what is the expected profit from a sale? Given the above information, what is the break-even probability of collection?

Reference no: EM133093175

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