Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please assist Modern Artifacts can produce keepsakes that will be sold for $130 each. Nondepreciation fuxed costs are $2,000 per year, and variable costs are

please assist
image text in transcribed
Modern Artifacts can produce keepsakes that will be sold for $130 each. Nondepreciation fuxed costs are $2,000 per year, and variable costs are $110 per unit. The initial investment of $5,500 will be depreciated straight-line over its useful iffe of five years to a finat value of zero, and the discount rate is 10% a. What is the accounting break-even level of sales if the firm pays no taxes? b. What is the NPV break-even level of sales if the firm pays no taxes? (Do not round intermediote colculotions, Round your final answer to the nearest whole number.) c. What is the accounting break-even level of sales if the firm's tax rate is 20% ? d. What is the NPV break-even level of sales if the firm's tax rate is 20% (Do not round intermediote colculations. Round your final answer to the neorest whole number.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commodity Finance Principles And Practice

Authors: Weixin Huang

1st Edition

1781371938, 978-1781371930

More Books

Students also viewed these Finance questions

Question

-3/8 (-9/20) Perform the indicated operation by hand.

Answered: 1 week ago

Question

=+ how might this lead to faster growth in productivity?

Answered: 1 week ago