Question
The Mini-Max Company has the following information on their new prospective project. Initial investment is $500 Fixed costs are $200/year. Variable costs: $3/unit. Depreciation(CCA): $150/year.
The Mini-Max Company has the following information on their new prospective project.
Initial investment is $500
Fixed costs are $ 200/year.
Variable costs: $ 3/unit.
Depreciation (CCA): $150/year.
Price: $ 8/unit.
Discount rate: 10%.
Project life: 2 years.
Tax rate: 40%.
If the initial investment is made in period 0 and the first operating cash flow is in period 1, what is the number of units sold to attain present value breakeven?
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
3rd edition
2901133951482, 1133951481, 978-1133951483
