Finance Chapter 4 - 42 Present Value and Break Even Interest

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Chapter 4	42
	Present Value and Break Even interest
	Consider a firm with a contract to sell an asset for 150k three years from now.
	The asset costs 102k to produce. Given a discount rate of 11%, will the firm make a profit?
	What rate does the firm break even?
		FV	150000
		PV	102000
		rate	0.11
		Nper	3
		Profit	$109,678.71	=PV(D12,D13,,-D10)
			-102000	=-D11
			$7,678.71	=SUM(D15:D16)
		Break Even	0.13718301	=(D10/D11)^(1/D13)-1
		r=(FV/PV)^(1/Nper)-1