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Georgetown Sightseers a new formed tour company is consider a new tour package with the following cashflows: capital outlay $3 million, fixed costs $1 million
Georgetown Sightseers a new formed tour company is consider a new tour package with the following cashflows: capital outlay $3 million, fixed costs $1 million per year. The tour package costs the company $500 to produce and can be sold at $1,500 per package to tourists. This tour package will last for the next five years. If the cost of capital is 20%, what is the NPV break-even number of tourists per year? (Ignore taxes.)
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