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

  • Field: Business & Finance
  • Posted6 years ago
  • Budget:  $999999.99
Report Issue
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
    Answers 2
    Asma
    profile
    Rated 440 times
    This answer :

    Purchase the answer to view it

    blurred-text
    shahimermaid
    profile
    Rated 472 times
    This answer :

    Purchase the answer to view it

    blurred-text