a. If the interest rate is 10 percent, should the Rhine Company set a price of $7,000 or $10,000? Why? (Consider only the next four years)
b. If the interest rate is 8 percent, should the Rhine Company set a price of $7,000 or $10,000? Why? (Consider only the next four years)
c. The results in parts a and b pertain to only the next four years. How can the firm's manager extend the planning horizon?
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