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Cast Iron Company, on each nondelinquent sale, receives revenues with a present value of $1,270 and...

Cast Iron Company, on each nondelinquent sale, receives revenues with a present value of $1,270 and incurs costs with a value of $1,035. Cast Iron has been asked to extend credit to a new customer. You can find little information on the firm but you believe that the probability of payment is no better than .78 and that there will be a repeat order in one year if payment occurs.

If the discount rate is 16%, calculate the minimum probability of payment on the repeat order at which credit can be extended. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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