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Example The investment in a new product requires a capital expenditure of 45,000.-. The economic life time is five years. The annual fixed operational payments

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Example The investment in a new product requires a capital expenditure of 45,000.-. The economic life time is five years. The annual fixed operational payments are 95,000.-. The proportional cash outs per unit amounts to 200.-. The internal interest rate (= WACC) is 10% and the number of selling units are 300/year. What is the minimum sales price/unit (x), which ensures the required profitability of the investment? Use a) the NPV method b) the annuity method

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