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step by step thanks 30) Hammer Company proposes to invest $6 million in a new type of hammer-making equipment. The fixed costs are $1 million
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30) Hammer Company proposes to invest $6 million in a new type of hammer-making equipment. The fixed costs are $1 million per year. The equipment will last for five years. The manufacturing cost per hammer is $1 and each hammer sells for $6. The cost of capital is 20 percent. Calculate the break-even (i.e., NPV = 0) sales volume per year. (Ignore taxes. Round to the nearest 1,000.) A) 500,000 units B) 550,000 units C) 650,000 units D) 600,000 units =Step by Step Solution
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