Accounting Break-Even Levels of Sales Assignment | Homework For You
someone other than prasad (tutor) answer please. Want a second opinion. Thanks for work Prasad. (PRASAD DO NOT ANSWER PLEASE)
Modern Artifacts can produce keepsakes that will be sold for $50 each. Nondepreciation fixed costs are $2,900 per year and variable costs are $30 per unit.
a. If the project requires an initial investment of $3,000 and is expected to last for 5 years and the firm pays no taxes. The initial investment will be depreciated straight- line over 5 years to a final value of zero, and the discount rate is 14%. What are the accounting and NPV break-even levels of sales? (Do not round intermediate calculations. Round your answers to the nearest whole number.)
Accounting break-even levels of sales
NPV break-even levels of sales 175 units 189 units
b. What will be the accounting and NPV break-even levels of sales, if the firms tax rate is 40%? (Do not round intermediate calculations. Round your answers to the nearest whole number.)
Accounting break-even levels of sales
NPV break-even levels of sales 175 units 198 units. Get Finance homework help today