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Problem 10-14 NPV Break-Even Analysis (L03) Modern Artifacts can produce keepsakes that will be sold for $100 each. Nondepreciation fixed costs are $1,800 per year,
Problem 10-14 NPV Break-Even Analysis (L03) Modern Artifacts can produce keepsakes that will be sold for $100 each. Nondepreciation fixed costs are $1,800 per year, and variable costs are $45 per unit. The initial investment of $2,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 12%. (For all the requirements, do not round intermediate calculations. Round your answer to the nearest whole number.) 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? 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%? units a. Acounting break-even level of sales b. NPV break-even level of sales c. Acounting break-even level of sales units units d. NPV break-even level of sales units
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