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5. Assume that TNT Ine, will sell a truck of widgets for $95,000 in four years, i.e., at time t=4. The widgets cost $57,000 to
5. Assume that TNT Ine, will sell a truck of widgets for $95,000 in four years, i.e., at time t=4. The widgets cost $57,000 to produce at t=0 (today). The discount rate on the widgets is 14 percent per year. Will TNT Ine. make a profit on this investment? If not, what is the dollar value of the loss? What should the discount rate be for TNT Inc, to break even? (20 MARKS)
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Numerical Methods In Finance
Authors: René Carmona, Pierre Del Moral, Peng Hu, Nadia Oudjane
2012th Edition
