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To manufacture an initial run of a machine, a firm will invest $ 7 5 0 , 0 0 0 for manufacturing equipment, which should
To manufacture an initial run of a machine, a firm will invest $ for manufacturing equipment, which should last six years, with straightline depreciation and no salvage value. The tax rate would be The initial selling price for a unit is expected to be $ Expected variable cost per unit is $ Expected fixed costs, such as rent, utilities, and salaries, but excluding taxdeductible depreciation expense, would be $ per year. Question a: Determine the number of unit sales needed for a breakeven operating profit. Question b: Assuming you could sell units per year, what would be the net present value at a discount rate? Please show steps for a BAII plus calculator
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