Demand for DVD Players The demand for DVD players is expanding rapidly, but the industry is highly

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Demand for DVD Players 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 percent, what is the price of a DVD player?

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