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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 $750,000 for manufacturing equipment, which should last six years, with straight-line depreciation and no salvage value. The tax rate would be 30%. The initial selling price for a unit is expected to be $12,000. Expected variable cost per unit is $5000. Expected fixed costs, such as rent, utilities, and salaries, but excluding tax-deductible depreciation expense, would be $250,000 per year. Question a: Determine the number of unit sales needed for a breakeven operating profit. Question b: Assuming you could sell 60 units per year, what would be the net present value at a 15% discount rate? Please show steps for a BAII plus calculator

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