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Steve (previously the meth dealer) is now considering importing commercial grade espresso maker to sell to restaurants in Indiana and surrounding areas. The specific product
Steve (previously the meth dealer) is now considering importing commercial grade espresso maker to sell to restaurants in Indiana and surrounding areas. The specific product that interests him is from a Russian firm that uses an innovated milk storage system. Steve believes that he can sell 50 of these machines per year at a $4,000/unit price. The variable cost to sell each machine is estimated at $500 (for gas, lodging, and schmoozing with potential clients). In order to deal with this Russian firm, Steve will be (invest) $50,000 with a nice man in Moscow who will "make the deal happen." Assuming that Steve require a 50% return on this risky investment, what is the maximum price that he should pay for each espresso maker
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