Problem 10 14 Break Even (LO2) Modern Artifacts can produce keepsakes that will be sold for $76 each Non depreciated fixed costs are $1,070 per year and variable costs are $46 per unit a If the project requires an initial investment of $3,170 and is expected to last for 6 years and the firm pays no taxes, what are the accounting and NPV break even levels of sales The initial investment will be depreciated straight line over 6 years to a final value of zero, and the discount rate is 8 (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 nearest whole dollar ) Accounting break even sales level $ NPV break even sales level $

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Problem 10-14 Break-Even (LO2) Modern Artifacts can produce keepsakes that will be sold for $76 each. Non-depreciated fixed costs are $1,070 per year and variable

Problem 10-14 Break-Even (LO2)

Modern Artifacts can produce keepsakes that will be sold for $76 each. Non-depreciated fixed costs are $1,070 per year and variable costs are $46 per unit.

a.	If the project requires an initial investment of $3,170 and is expected to last for 6 years and the firm pays no taxes, what are the accounting and NPV break-even levels of sales? The initial investment will be depreciated straight-line over 6 years to a final value of zero, and the discount rate is 8%. (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 nearest whole dollar.)

	Accounting break-even sales level $

	NPV break-even sales level $