Calculate the profit the firm will make on this asset

Reference no: EM13294767

Consider a firm with a contract to sell an asset for $144,000 five years from now. The asset costs $80,000 to produce today. Given a relevant discount rate on this asset of 12 percent per year, calculate the profit the firm will make on this asset. At what rate does the firm just break even? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13294767

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