17. NPV Break-Even. Reconsider Finefodder's new superstore. Suppose that by investing an addi- tional $600,000 initially in more efficient checkout equipment, Finefodder could reduce vari- able costs to 80% of sales. (LO2)

a. Using the base-case assumptions (Table 10-1), find the NPV of this alternative scheme. (Hint: Remember to focus on the incremental cash flows from the project.)

b. At what level of sales will accounting profits be unchanged if the firm invests in the new equipment? Assume the equipment receives the same 12-year straight-line depreciation treatment as in the original example. (Hint: Focus on the project's incremental effects on fixed and variable costs.)

c. What is the NPV break-even point?