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A project under consideration costs $750,000, has a 5-year life, and has no salvage value. Depreciation is straight-line to $0. The required return is 10%
- A project under consideration costs $750,000, has a 5-year life, and has no salvage value. Depreciation is straight-line to $0. The required return is 10% and the tax rate is 21%. Under the base case scenario, Unit Sales = 500, Price per Unit = $2,500, and Cash Expenses per Unit = $1,500. All else constant, what level of unit sales are required to break-even based on the NPV metric? This needs to solved in excel.
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