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Please solve step by step. Much appreciated Sensitivity Analysis 1: Suppose you are planning to run a Blockbuster video store. If the price per rental

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Sensitivity Analysis 1: Suppose you are planning to run a Blockbuster video store. If the price per rental is $3, equipment costs are $20,000 and will be depreciated using straight line method over 5 years and have zero salvage value. The variable costs are 10% of rentals and fixed are $40,000 per year. Assume no changes in working capital, if the required return is 15% and the tax rate is 15%, how many annual rentals have to be made in order for the store, as a project, to be accepted. Some scenarios

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