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 9:07 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%. (Round your answers to the
nearest whole dollar.)
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%. (Round your answers to the
nearest whole dollar.)
b. How do your answers change if the
firm's tax rate is 40%? (Round your answers to the
nearest whole dollar.)