What Is the Break-Even Probability of Collection When the Present

question 48

Multiple Choice

What is the break-even probability of collection when the present value of revenues from a sale is $100,000 and the present value of cost is $87,000?

• A) 1.00
• B) 0.87
• C) 0.74
• D) 0.13

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Definitions:

Formal

Following or in accordance with established rules, procedures, or etiquette, often characterized by a clear structure or organization.

Organized

Characterized by systematic planning and coordinated effort, often referring to groups, activities, or structures.

Recreation

Activities done for enjoyment, leisure, or pleasure when one is not working.

Necessities

Basic needs or essential items required for living and maintaining a decent quality of life, such as food, water, shelter, and clothing.