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QUESTION
Consider a firm with a contract to sell an asset for 150K five years erom now. The asset costs 75K to produce today.
Consider a firm with a contract to sell an asset for 150K five years erom now. The asset costs 75K to produce today. given a relevant discount rate on this asset of 10% per year, will the firm make a profit on this asset?
Can someone tell me where F01=4 comes from?
