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What is the npv of the contract

Question: Today a firm signed a contract to sell a capital asset for $90,000. The firm will receive the payment five years from today. The asset costs $60,000 to produce, payable immediately.

a. If the appropriate discount rate is 10%, what is the NPV of the contract?

b. At what discount rate will the firm break even on the sale of the asset?

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Finance Basics: What is the npv of the contract

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