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Question 2 Not yet answered Marked out of 15:00 P Flag question FBA Corporation manufactures paper flowers. Each flower can be sold for S12 The
Question 2 Not yet answered Marked out of 15:00 P Flag question FBA Corporation manufactures paper flowers. Each flower can be sold for S12 The materials cost for each flower is $4. The fixed costs incurred each year for factory maintenance and administrative expenses are $200,000. FBA needs to invest $1,000,000 to buy the machinery to produce the paper flowers. The machine is depreciated straight-line over 8 years to a salvage value of $200,000 and is sold at $200.000 at the end of year 8. The tax rate is 40% and the discount rate is 10%. (Note: (1) Use 4 decimal points for PVIFA and() show detail computation steps and use two decimal points for percentage for numeric) in computations and answers.] (3%) What are the accounting break-even (0 quantity (units) and (l) sales (51? (4%) What is the project NPV at the accounting break-even level? (5%) What are the NPV break-even () quantity (units) and (i)sales ($1? (3%) What is the project NPV at the NPV break-even lever? Show detail computations for your answer. (a) ( (0)
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