What is the accounting and NPV break-even level of sales for a project requiring an investment of $10 million? Out of th
Posted: Tue Jan 18, 2022 12:59 pm
What is the accounting and NPV break-even level of sales for a
project requiring an investment of $10 million? Out of the initial
investment, only 4 million can be depreciated. The rest are sunk
costs. and having variable costs equal to 40% of sales. General
Expenses are 300,000$ a year and marketing expenses are $400,000 a
year? R& D expenses are an additional 200,000$ a year. Assume
the project will have a life of 10 years and the discount rate is
10%. Tax rate = 20%.
project requiring an investment of $10 million? Out of the initial
investment, only 4 million can be depreciated. The rest are sunk
costs. and having variable costs equal to 40% of sales. General
Expenses are 300,000$ a year and marketing expenses are $400,000 a
year? R& D expenses are an additional 200,000$ a year. Assume
the project will have a life of 10 years and the discount rate is
10%. Tax rate = 20%.