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1. Attach File Print3D can produce its new personal 3D printer that will be sold for $500 each. The fixed costs are $70,000 per year
1. Attach File Print3D can produce its new personal 3D printer that will be sold for $500 each. The fixed costs are $70,000 per year and variable costs are $400 per unit. The project requires an initial investment of $300,000 and is expected to last for 10 years, and the firm pays no taxes. Assume the initial investment will be depreciated straight-line over 10 years, corporate tax is 30%, and the cost of capital is 12%. a. (6 points) What is the accounting break-even level of sales? b. (8 points) What is the economic break-even level of sales
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