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5. BREAK-EVEN ANALYSIS V-Tech can take a new investment that can produce high tech telephones. It is expected that the new phones can be sold

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5. BREAK-EVEN ANALYSIS V-Tech can take a new investment that can produce high tech telephones. It is expected that the new phones can be sold at $40 each. Non-depreciated fixed costs are $1000 per year and variable costs are $30 per unit. a. If the project requires an initial investment of $4000 and is expected to last for 5 years and the firm pays no taxes, what are the accounting and NPV break-even levels of sales? The initial investment will be depreciated straight line over 5 years and has no scrape value, and the discount rate is 8 percent. b. How would your answers change quantitatively if the firm's tax rate is 30%

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