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Sales is $18 million, VC is 82% of Sales and Fixed Costs are 3 million. Depreciation will be $0.5 million a year. The project is

  1. Sales is $18 million, VC is 82% of Sales and Fixed Costs are 3 million. Depreciation will be $0.5 million a year. The project is for 5 years. Opportunity cost of capital is 8%. Tax is 10%. Initial Investment is $ 5 million.
    1. What is the accounting breakeven revenue?
    2. What is the NPV breakeven?

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