Normally we charge \$3.00 for this answer

## Just do my homework!

• HTML tags will be transformed to conform to HTML standards.
Question
Submitted by jehchr on Thu, 2012-04-12 23:47
due date not specified
jehchr bought 2 out of 3 answered question(s)

other students are interested:
garopa on Fri, 13 Apr 2012
one anonymous student showed interest

# Modern Artifacts can produce keepsakes that will be sold for \$70 each. Nondepreciation fixed costs are \$2,000 per year and...

Modern Artifacts can produce keepsakes that will be sold for \$70 each. Nondepreciation fixed costs are \$2,000 per year and variable costs are \$35 per unit.

a.

If the project requires an initial investment of \$4,000 and is expected to last for 5 years and the firm pays no taxes. The initial investment will be depreciated straight-line over 5 years to a final value of zero, and the discount rate is 10%. What are the accounting and NPV break-even levels of sales? (Do not round intermediate calculations. Round your answers to the nearest whole number.)

Accounting break-even levels of sales units

NPV break-even levels of sales units

--------------------------------------------------------------------------------

b.

What will be the accounting and NPV break-even levels of sales, if the firm's tax rate is 40%? (Do not round intermediate calculations. Round your answers to the nearest whole number.)

Accounting break-even levels of sales units

NPV break-even levels of sales

Submitted by Asma on Fri, 2012-04-13 13:01
teacher rated 247 times
4.82591
purchased 2 times
price: \$5.00

5

## Updated solution

body preview (9 words)

Please find attached xxxx xxx xxxxxxx and xxxxxxx solution.

file1.doc preview (262 words)

xxx
 xxxxxxxx cost x 50% of sales revenue xxxxxxxxxx additional profit xxx xx of xxxxxxxxxx xxxxx x xxxxxx xxxxxxxxxxxx expense = \$4,000/5 x \$800 xxx year xxxxxxxxxx xxxxx of sales x
xxxxxx
 Fixed costing including xxxxxxxxxxxx = \$2,000 x \$800 = xxxxx xxx year Additional xxxxxx from each additional dollar xx sales xxxx
xxx
 xxxx xxxxx level corresponds to x production level of xxxxxxxxx per unit = xx xxxxxx xx xxxx xxx NPV xxxxxxxxxx level xx sales, first xxxxxxxxx xxxx xxxxx xxxx no xxxxxx Cash flow x (0.50 × xxxxxx − \$2,000
x
 The xxxx 5-year annuity factor xxx
xxx
 xxxxxxxxxx xx xxxxxxx NPV xxxxxx zero: xxxxxxx flows) − investment x 0 [3.79079 × (0.50 × xxxxxx − xxxxxxx − xxxxxx x x xxxxxxxxx × xxxxxx − xxxxxxx − xxxxxx - - - more text follows - - -

Submitted by Asma on Fri, 2012-04-13 06:38
teacher rated 247 times
4.82591
purchased one time
price: \$5.00

## Accounting and NPV Break-even level of sales

body preview (19 words)

xxxxxx check the xxxx and xxx xx know, xx answer xx xxxxx then x will xx for xxxxxxx Thanks

file1.doc preview (469 words)

xxxxxx xxxxxxxxx can produce xxxxxxxxx that xxxx xx xxxx for xxx xxxxx Nondepreciation fixed costs xxx \$2,000 xxx year xxx xxxxxxxx xxxxx xxx xxx xxx unit.

a.

If xxx xxxxxxx xxxxxxxx xx initial xxxxxxxxxx of \$4,000 and xx xxxxxxxx to last for x years and the firm xxxx no xxxxxx xxx xxxxxxx investment will be depreciated xxxxxxxxxxxxx over 5 years to a final xxxxx of zero, xxx xxx discount rate xx 10%. xxxx xxx the accounting xxx NPV xxxxxxxxxx xxxxxx xx xxxxxx xxx not round intermediate calculations. xxxxx xxxx xxxxxxx to xxx xxxxxxx whole number.)

xxxxxxxxxx break-even xxxxxx of sales

units

NPV xxxxxxxxxx xxxxxx xx xxxxxx

xxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

b.

xxxx xxxx be xxx accounting xxx xxx xxxxxxxxxx xxxxxx of

- - - more text follows - - -

Submitted by shahimermaid on Fri, 2012-04-13 01:03
teacher rated 330 times
4.40606
price: \$3.00

## the answer is in attached file

body preview (0 words)

file1.docx preview (602 words)

xxxxxx Artifacts xxx produce xxxxxxxxx xxxx will xx sold for \$70 each. Non depreciation fixed costs are xxxxxx xxx year xxx variable xxxxx xxx xxx xxx unit.

xx

xx xxx xxxxxxx xxxxxxxx xx initial investment xx \$4,000 and xx xxxxxxxx xx last xxx x years and the xxxx xxxx no xxxxxx xxx initial investment will xx xxxxxxxxxxx straight-line xxxx x xxxxx to a xxxxx xxxxx of xxxxx xxx xxx xxxxxxxx xxxx is xxxx What xxx the accounting xxx xxx break-even levels of xxxxxx (Do xxx round xxxxxxxxxxxx xxxxxxxxxxxxx Round xxxx xxxxxxx to xxx xxxxxxx xxxxx number.)

xxxxxxxxxxxx
 xxxx 0 xxxxx 1 Year1 xxx 0.9091 xxxxx 800 xxxxxx Year x 800 xxxxxx Year 4 800 0.6830 Year x 800 xxxxxx

Accounting xxxxxxxxxx xxxxxx of sales

xxx xxxxxxxxxx xxxxx xx sales xx the xxxxx point at

- - - more text follows - - -