Air Soares is a wholesalet that stocks engine components and test equipment for the commercial...

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Air Soares is a wholesalet that stocks engine components and test equipment for the commercial ailcraft industry A riew cistomer has ploced an order for eight high bypass turbine engines. which increase fuel economy. The variable cost is $19 million per unit. and the creat price is $2.095 mition each Credit is extended for one period, and based on historical experience, piryment for about 1 out of every 200 such orders is never collected. The required retuin is 22 percent per period. The customer will not buy if credit is not extended. e. What is the NPV per engine purchased on credit? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.9. 1,234,567.89.) b. What is the break-even probability of defaut in part (a)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e.g. 32.16.) c-1. Suppose that customers who don' default become repeat customers and place the same order every period forevec. Further assume that repeat customers never default. What is the NPV per engine purchased on credit? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, c.2. Assuming the customer becomes a repeat customer, what is the break-even probability of default? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.9., 32.16.)

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