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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Definitions:

Genomes

The complete set of genetic material, including all of its genes, present in an organism or a cell.

Organic Monomers

Simple molecules that can bind chemically to other molecules to form polymers, essential in the creation of complex biological structures.

Interstellar Clouds

Large accumulations of gas, dust, and plasma in space, often serving as the birthplaces of stars.

Organic Compounds

Chemical compounds made up of carbon atoms bonded with other elements and primarily found in living systems.