The demand for DVD players is expanding rapidly, but the industry is highly competitive. A plant to make DVD players costs $40 million, has an annual capacity of 100,000 units, and has an indefinite physical life. The variable production cost per unit is $20 and is not expected to change. If the cost of capital is 10%, what is the price of a DVD player? Plant 40,000,000 Annual Production Capacity 100,000 Production cost per unit 20 Cost of capital 10%