Decides to build space shuttle at cost

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Your boss is an eccentric billionaire. He decides to build a space shuttle at a cost of £500m. The running costs will be £8.5m per year. He wants to make the shuttle pay for itself over its 10 year life and to this end he plans to sell 100 commercial trips a year, each trip taking 4 passengers. He has asked you to advise the minimum price, from the four price points on the list below, that he can charge each passenger for the trip. Assume an interest rate of 7%.

Reference no: EM132073944

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