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Finance

Problem:

KMW Inc. sells finance textbooks for $150 each. The variable cost per book is $30 and the fixed cost per year is $30,000. The process of creating a textbook costs $150,000 and the average book has a life span of three years.

Required:

Question: What is the economic or NPV break-even number of books that must be sold each year given a discount rate of 12%?

Note: Please provide through step by step calculations.

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Category:- Basic Finance
Reference No.:- M91163288

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