A Customer Has Ordered Goods Generating a Present Value of $800

question 42

Multiple Choice

A customer has ordered goods generating a present value of $800. The present value of production costs is $600. Under what conditions should you extend credit if there is no possibility of repeat orders?

• A)If the probability of payment exceeds 0.67
• B)If the probability of payment exceeds 0.80
• C)If the probability of payment exceeds 0.75
• D)If the probability of payment exceeds 0.90

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Library of Congress

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