Modern Artifacts can produce keepsakes that will be sold for $76 each. Non-depreciated fixed costs are $1,040 per year a
Posted: Sat Feb 26, 2022 9:06 am
Modern Artifacts can produce keepsakes that will be sold for $76
each. Non-depreciated fixed costs are $1,040 per year and variable
costs are $57 per unit.
a. If the project requires an initial investment of $2,810 and
is expected to last for 6 years and the firm pays no taxes, what
are the accounting and NPV break-even levels of sales? The initial
investment will be depreciated straight-line over 6 years to a
final value of zero, and the discount rate is 9%
b.How do your answers change if the firm's tax rate is
40%? (Round your answers to the nearest whole
dollar.)
each. Non-depreciated fixed costs are $1,040 per year and variable
costs are $57 per unit.
a. If the project requires an initial investment of $2,810 and
is expected to last for 6 years and the firm pays no taxes, what
are the accounting and NPV break-even levels of sales? The initial
investment will be depreciated straight-line over 6 years to a
final value of zero, and the discount rate is 9%
b.How do your answers change if the firm's tax rate is
40%? (Round your answers to the nearest whole
dollar.)