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Pinder Co . , Ltd . is considering investing $ 5 0 0 , 0 0 0 to build a factory to produce electric bicycles.

Pinder Co., Ltd. is considering investing $500,000 to build a factory to produce electric bicycles. Pinder Co., Ltd. has signed a contract with a large retailer that guarantees that Pinder Co., Ltd. will get $50 for every bicycle sold, in addition to all production-related costs. This means that the annual cash flow generated by the production of bicycles will be $50 multiplied by the number of bicycles sold. In exchange for this guarantee, the retailer will take over the factory at a price of $200,000 in five years. Pinder Co., Ltd. is expected to sell 7,000 bicycles every year in the next five years. Assume that the discount rate of Pinder Co., Ltd. is 10%.
How much do the sales of bicycles need to be reduced before this project reduces the wealth of the shareholders of Pinder Co., Ltd.? 

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