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problem: Rockwell Heating is selling a commercial heating unit at the price of 100,000 dollar per unit.  The variable price of producing this unit is 75,000 dollars.  Rockwell is considering offering credit terms to their customers, which would allow payment to be delayed one month. Rockwell forecasts that offering these terms will increase monthly sales from 50 units to sixty units.  Rockwell does not expect the increased production to change variable cost and Rockwell does not expect to charge a higher price.  The appropriate discount price is one percent a month.  find out the probability of payment that would make Rockwell indifferent between granting credit and the present policy. Show all work to receive full credit.

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