What is the maximum probability of default

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Reference no: EM132046744

Alexander Moore & Co. is willing to offer credit on a one-time purchase provided the NPV of the transaction is at least $50 at a required monthly return of 2 percent. Assume a potential sale has a sales price of $248 and a variable cost of $164. What is the maximum probability of default that will result in an acceptable offer? PLEASE EXPLAIN ANWER

Reference no: EM132046744

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