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You are considering a start of a new product line. the Project cost $800,000 Project life 4 years, Depreciation straight-line to zero, Feasibility study $10,000,

You are considering a start of a new product line. the Project cost $800,000 Project life 4 years, Depreciation straight-line to zero, Feasibility study $10,000, Sales units $450 units per year, Price per unit $18,000, Variable cost per unit $15,400, Fixed costs $610,000 per year.

* what will be the new base case NPV if equipment will be sold at the end of project for $500,000 and that there will be an initial investment in net working capital of $50,000 which will be recovered at the end of the project

* calcute the breakeven point

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