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12. Return to the initial inflation assumptions (5 percent on price and 2 percent on cash costs). a. Assume that the sales quantity estimate remains

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12. Return to the initial inflation assumptions (5 percent on price and 2 percent on cash costs). a. Assume that the sales quantity estimate remains at 100,000 units per year. What Year 0 unit price would the company have to set to cause the project to just break even, that is, to force NPV = $0? Year 0 sales price = $40.88 b. Now assume that the sales price remains at $40. What annual unit sales volume would be needed for the project to break even? Sales volume = 102,195

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