What will be accounting and NPV break-even levels of sales

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Reference no: EM131070674

Modern Artifacts can produce keepsakes that will be sold for $80 each. Nondepreciation fixed costs are $1,100 per year and variable costs are $60 per unit.

a. If the project requires an initial investment of $4,000 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 12%. What are the accounting and NPV break-even levels of sales? (Do not round intermediate calculations. Round your answers to the nearest whole number.)

b. What will be the accounting and NPV break-even levels of sales, if the firm's tax rate is 40%? (Do not round intermediate calculations. Round your answers to the nearest whole number.)

Reference no: EM131070674

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