Question
Modern Artifacts can produce keepsakes that will be sold for $ 86 each . Non -depreciated fixed costs are $ 960 per year and variable
Modern Artifacts can produce keepsakes that will be sold for $ 86 each . Non -depreciated fixed costs are $ 960 per year and variable costs are $46 per unit . a. If the project requires an initial investment of $ 2,940 and is expected to last for 5 years and the firm pays no taxes , what are the accounting and NPV break - even levels of sales ? The initial investment willbe depreciated straight -line over 5 years to a final value of zero , and the discount rate is 6 % . (Round your answers to the nearest whole dollar . ) Accounting break -even sales level NPV break -even sales level b . How do your answers change if the firm's tax rate is 40 %? (Round your answers to the nearestwhole dollar . ) Accounting break -even sales level NPV break - even sales level
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