Chapter 4: Net Present Value - Finance Department
[($340,000 + $20,000) (1 – 0.35)] / [($2.00 - $0.72) (1 – 0.35)] = 281,250. The proprietor must sell at least 281,250 abalones per year in order for you to receive any profit. b. To calculate the amount of profit you will receive if the proprietor sells 300,000 abalones, subtract the … ................
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