Red-Star Co. wants to sell an electrical generator for AED 165,000 in 2024. The price of this generator in the market today is AED 94,000 ( according to GE company who is the producer of this...

Red-Star Co. wants to sell an electrical generator for AED 165,000 in 2024. The price of this generator in the market today is AED 94,000 (according to GE company who is the producer of this generator). If the discount rate on this generator is 9.5 percent per year.

1. Do you think the firm will make a profit if they sell this generator?


2. What is the rate that will make the firm breakeven?