Modern Artifacts can produce keepsakes that will be sold for $60 each. Nondeprec

Question

Modern Artifacts can produce keepsakes that will be sold for $60 each. Nondepreciation fixed costs are $3,000 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 10%. 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 = in n/r units b. What will be the accounting and NPV break-even levels of sales, if the firm's tax rate is 30%? (Do not round intermediate calculations. Round your answers to the nearest whole number.) Accounting break-even levels of sales = in n/r units NPV break-even levels of sales = in n/r units

Explanation / Answer

this link will help :) rate me if u like :) http://en.wikipedia.org/wiki/Break-even_(economics)

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