(Continuation of previous problem) After long negotiations, the IOC decided to lend Kane $600,000 at f=...

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(Continuation of previous problem) After long negotiations, the IOC decided to lend Kane $600,000 at f= 0. The project went ahead. After the research and development stage was com- pleted (at t = 4) but before the investment was made, the IOC decided to cancel race walking as an Olympic event. As a result, Kane is expecting a large drop in sales of the SWS shoes. What is the minimum number of shoes Kane has to sell annually for the project to be profitable in each of the following two cases: (a) If, in the event of cancellation, the original loan term continues? (b) If, in the event of cancellation, the company has to return the outstanding debt to the IOC immediately? (Continuation of previous problem) After long negotiations, the IOC decided to lend Kane $600,000 at f= 0. The project went ahead. After the research and development stage was com- pleted (at t = 4) but before the investment was made, the IOC decided to cancel race walking as an Olympic event. As a result, Kane is expecting a large drop in sales of the SWS shoes. What is the minimum number of shoes Kane has to sell annually for the project to be profitable in each of the following two cases: (a) If, in the event of cancellation, the original loan term continues? (b) If, in the event of cancellation, the company has to return the outstanding debt to the IOC immediately?

Answer rating: 100% (QA)

a If in the event of cancellation the original loan term continues ANS WER At t 4 the IOC decides to ... View the full answer