Question
The MiniMax Company has the following cost information on its new prospective project Initial investment 700. Fixed costs 200 per year .Variable costs 3 per
The MiniMax Company has the following cost information on its new prospective project Initial investment 700. Fixed costs 200 per year .Variable costs 3 per unit. Depreciation 140 per year .Price 8 per unit. Discount rate 12 percent .Project life Three years .Tax rate 34 percent . Assume that it sells the machine for book value at the end of Year 3 so there is no capital gain or loss on the initial investment. On an excel sheet show How many units per year does it have to sell to break even from an NPV standpoint
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
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