Question: I need help with if the firm will make a profit and also how to calculate the break even rate! Please show calculations of how
I need help with if the firm will make a profit and also how to calculate the break even rate! Please show calculations of how to calculate the break even rate!

Consider a firm with a contract to sell an asset for $50,000 three years from now. The asset costs $42,000 to produce today. Given a discount rate of 9%, will the firm make a profit on this asset? Answer: At what rate does the firm just break even
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