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Q4-The investment of $500,000 at time 0 for depreciable machinery and equipment will generate sales revenues for 5 years with production of 100,000 units in
Q4-The investment of $500,000 at time 0 for depreciable machinery and equipment will generate sales revenues for 5 years with production of 100,000 units in year 1 and increase by constant gradient of 10,000 units each year with operating cost of $50,000 in year 1, increase $10,000 each year, the initial investment will depreciate 7 years using MACRS. The effective income tax is 40%. What is breakeven sales price is needed to give 25% DCFROR
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