Firms generally make purchases from other firms on credit and they record the debt as an account payable. This payable is also known as trade credit, which is defined as the debt arising from credit purchases and recorded as an account receivable by the seller and as an account payable by the buyer. Trade credit has a portion that

Consider a firm with a contract to sell an asset for $149,000 four years from now. the asset costs $85,000 to produce today. a. given a relevant discount rate of 14 percent per year, calculate the profit the firm will make on this asset. (a loss should be indicated by a minus sign. do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. at what rate does the firm just break even?