Question
Demerara Icehouse Inc. is considering a new investment in ice-making. The new equipment costs $6 million, fixed annual costs are $0.5 million, variable costs $1
Demerara Icehouse Inc. is considering a new investment in ice-making. The new equipment costs $6 million, fixed annual costs are $0.5 million, variable costs $1 per ice block and it sells for $6. The company uses a hurdle rate of 20%. The equipment will last of 5 years. Calculate the break-even (i.e., NPV = 0) sales volume per year. (Ignore taxes. Round to the nearest 1,000.)
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
