Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 20, Problem 19QP
Summary Introduction

To determine: The break-even price per unit

Introduction:

Break-even price is a price at which a firm earns exactly no profit. Break-even price is calculated by setting the net present value (NPV) is equal to 0 and solve for P' (Price under new policy).

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Fundamentals of Corporate Finance

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