8.6 You are considering investing in a fledgling company that cultivates abalone for sale to local restaurants.
Question:
8.6 You are considering investing in a fledgling company that cultivates abalone for sale to local restaurants. The proprietor says he’ll return all profits to you after covering operating costs and his salary. How many abalone must be harvested and sold in the first year of operations for you to get any payback? (Assume no depreciation.)
How much profit will be returned to you if he sells 300,000 abalone?
Present Value Break-Even Analysis
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Related Book For
Corporate Finance
ISBN: 9780071229036
6th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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