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A company sells Tidbits to consumers at a price of $91 per unit. The costs to produce Tidbits is $45 per unit. The company will
A company sells Tidbits to consumers at a price of $91 per unit. The costs to produce Tidbits is $45 per unit. The company will sell 16,000 Tidbits to consumers each year. The fixed costs incurred each year will be $160,000. There is an initial investment to produce the goods of $2,200,000 which will be depreciated straight line over 7 year life of the investment to a salvage value of $0. The opportunity cost of capital is 5% and the tax rate is 26%. What is operating cash flow each year? Correct response: 507,954.2910 Click "Verify" to proceed to the next part of the question. Using an operating cash flow of 507,954.29 each year, what is the NPV of this project? Correct response: 739,213.19100 Click "Verify" to proceed to the next part of the question. Given a net present value of $739,213.19, should the company accept or reject this project? Accept Reject Correct response: Accept Click "Verify" to proceed to the next part of the question. Find the net present value break-even level of units sold. Round your answer to the nearest whole unit Enter your response below. Click "Verify" to proceed
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