You are preparing to produce some goods for sale. You will sell them in one year and

Question:

You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $80,000 immediately. If your cost of capital is 7%, what is the minimum dollar amount you need to expect to sell the goods for in order for this to be a non-negative NPV ?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...

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