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What is the expected profit of granting credit

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How do I calculate, what is the expected profit of granting credit?

What is the break-even probability of collection?

With present value of $1,250 and incurs costs with a present value of $1,000. Increased from $1,000 to $1,100. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.98

Reference no: EM132088220

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