Question: Time remaining: 4.0 value: 1.00 points Problem 4-42 Present Value and Break-Even Interest Consider a firm with a contract to sell an asset for $139.000

 Time remaining: 4.0 value: 1.00 points Problem 4-42 Present Value and

Time remaining: 4.0 value: 1.00 points Problem 4-42 Present Value and Break-Even Interest Consider a firm with a contract to sell an asset for $139.000 five years from now. The asset costs $75.000 to produce today. Given a relevant discount rate on this asset of 14 percent per year, calculate the profit (or loss) the firm will make on this asset. (A loss should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) Firm's profit(loss) At what rate does the firm just break even? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e.g. 32.16.) Break-even interest rate 9% References eBook & Resources Worksheet Dificulty intermediate

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