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FBA Corporation manufactures paper flowers. Each flower can be sold for $12. The materials cost for each flower is $4. The fixed costs incurred each

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FBA Corporation manufactures paper flowers. Each flower can be sold for $12. The materials cost for each flower is $4. The fixed costs incurred each year for factory maintenance and administrative expenses are $200,000. FBA needs to invest $1,000,000 to buy the machinery to produce the paper flowers. The machine is depreciated straight-line over 8 years to a salvage value of $200,000 and is sold at $200,000 at the end of year 8. The tax rate is 40% and the discount rate is 10%. [Note: (i) Use 4 decimal points for PVIFA and (ii) show detail computation steps and use two decimal points for percentage (or numeric) in computations and answers.) (3%) What are the accounting break-even (i) quantity (units) and (ii) sales ($)? (b) (4%) What is the project NPV at the accounting break-even level? (c) (5%) What are the NPV break- even (i) quantity (units) and (ii) sales ($)? (d) (3%) What is the project NPV at the NPV break-even level? Show detail computations for your answer. (a)

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