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Homework answers / question archive / Modern artifacts can produce keepsakes that will be sold for $100 each
Modern artifacts can produce keepsakes that will be sold for $100 each. Nondepreciation fixed costs are $1,300 per year and variable cost are $70 per unit. The initial investment of $4000 will be depreciated straight line over its useful life of 5 years to a final value of zero and the discount rate of 12%
a. What is the account break even level is sales if the firm pays no taxes?
b. What is the NPV break even level of sales if the firm pays no taxes?
c. What is the account break even level of sales if the firm tax rate is 30%
d. What is the NPV break even level of sales if the firm tax rate is 30%
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