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problem: XYZ Inc. wants to invest in a new project to develop a brand new product. The project requires an initial investment in equipment of $475,000 [25percent CCA class).  The project will also incur annual fixed costs of $93,500 and variable cost of $0.18 per unit.  XYZ expects to produce 200,000 units of the new product.  The product and the equipment have a life expectancy of five years and the equipment can be sold for 7.5percent of its original cost at the end of the 5 years.  find out the minimum price at which this product should be sold to earn a minimum rate of return of 5.0 percent per year?  XYZ's corporate tax rate is 38.0%.

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