Response to the following problem:
Locust Software sells computer training packages to its business customers at a price of $105. The cost of production (in present value terms) is $99. Locust sells its packages on terms of net 30 and estimates that about 8% of all orders will be uncollectible. An order comes in for 20 units. The interest rate is 5% per month.
What is the break-even probability of collection?
What is the break-even probability of collection in the repeat-sales case? Round your answer to 2 decimal places).