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A company sells Gizmos to consumers at a price of $ 8 9 per unit. The costs to produce Gizmos is $ 2 9 per

A company sells Gizmos to consumers at a price of $89 per unit. The costs to produce Gizmos is $29 per unit. The company will sell 16,000 Gizmos to consumers each yeat. The fixed costs incurred each year will be $130,000. There is an initial investment to produce the goods of $2,100,000 which wili be depreciated straight line over 14 year itie of the investment to a salvage vatue of $0. The opporituitity cost of capilal is 13% and the lax fale is 40%.
What is operating cash flow each year?
Correct response: 558,000+-10
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Using an operating cash flow of 558,000 each year, what is the NPV of this project?
1416788.3
Correct response: 1,416,788.34+-100
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Given a net present value of $1,416,788.34, should the company accept or reject this project?
Reject
Accept
Correct response: Accept
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Find the net present value break-even level of units sold. Round your answer to the nearest whole unit
Enter your responso below.
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