At what rate does the firm just break even

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Reference no: EM131072837

Consider a firm with a contract to sell an asset for $137,000 five years from now. The asset costs $73,000 to produce today. Given a relevant discount rate on this asset of 13 percent per year, calculate the profit the firm will make on this asset. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Firm's profit (loss) $__________

At what rate does the firm just break even? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Break-even interest rate_______%

Reference no: EM131072837

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