What is the minimum probability of collecting the service

Reference no: EM132650429

Question 1: A new client from out of town is quoted $6,000 for a repair. The service people ask you to approve this. You do a quick check on the client and assess a 15% default risk. What is the NPV of the client? What is the break-even probability? What is the minimum probability of collecting for you to approve the service?

Reference no: EM132650429

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