A company sells Widgets to consumers at a price of $$106$ per unit. The costs to produce Widgets is $$20$ per unit. The company will sell $18,000$ Widgets to

consumers each year. The fixed costs incurred each year will be $$150,000.$ There is an initial investment to produce the goods of $$3,900,000$ which will be

depreciated straight line over $18$ year life of the investment to a salvage value of $$0.$ The opportunity cost of capital is $12\%$ and the tax rate is $36\%.$

What is operating cash flow each year?

Correct response: $972,720+-10$

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Using an operating cash flow of $972,720$ each year, what is the NPV of this project?

Correct response: $3,151,899\mathrm{.}08+-100$

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Given a net present value of $$3,151,899\mathrm{.}08,$ should the company accept or reject this project?

Accept

Reject

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

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