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A firm that pays no tax is considering a 5 year project that requires an initial investment of $25,000 and has a beta of 1.5.

A firm that pays no tax is considering a 5 year project that requires an initial investment of $25,000 and has a beta of 1.5. The project has the following annual projected income statement:

Sales

$50,000

Cost of Goods Sold (Variable Costs)

20,000

Depreciation

5,000

Profit

$25,000

The treasury bill rate is 3% and the expected return on the market is 6.33%

a) What is the degree of operating leverage of the project?

b) What is the accounting breakeven point for this project?

c) What is the NPV breakeven point for the project?

d) If your answers to parts b and c are different, explain why.

please some answer it at least half of it please I am begging you

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