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Sales price per unit $2.20 Variable cost per unit $1 Fixed cost $340,000 Tax Rate 40% The cost of capital for the company is 15%,
Sales price per unit $2.20 Variable cost per unit $1 Fixed cost $340,000 Tax Rate 40% The cost of capital for the company is 15%, the initial investment in equipment is $140,000 and the projects economic life is seven years. The equipment is depreciated on a straightline basis to a salvage value of zero over the projects life. What is the financial (NPV) breakeven level of sales? Show your work. I'd appreciate if you'd reply quickly. Its kinda urgent :)
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