Lower firm break-even point-the better for the firm

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Reference no: EM131884148

1. Determine whether a steel company or a retail food chain would have a greater business risk. Provide support for your rationale.

2. The lower a firm’s break-even point, the better for the firm.

True

False

3. What is the present value of $10,000 received

a. 12 years from today when the interest rate is 4% per? year?

b. 20 years from today when the interest rate is 8% per? year?.

c. 66 years from today when the interest rate is 2% per? year?

(round answers to the nearest dollar)

Reference no: EM131884148

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