FIN5213 WEEK2 Q4.docx - QUESTION Consider a firm with a...

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QUESTIONConsider a firm with a contract to sell an asset for $220,000 seven years from now. The asset costs $75,000 to produce today. Given a relevant discount rate on this asset of 7.5 percent per year, will the firm make a profit on this asset? (3 points )At what rate does the firm just break even?(3 points)

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