Modern Artifacts can produce keepsakes that will be sold for $50 each. Nondepreciation fixed costs are $1,500 per year, and variable costs are $30 per unit. The initial investment of $2,000 will be...


Modern Artifacts can produce keepsakes that will be sold for $50 each. Nondepreciation fixed costs are $1,500 per year, and variable costs are $30 per unit. The initial investment of $2,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 10%.




(For all the requirements, do not round intermediate calculations. Round your answer to the nearest whole number.)




a.
What is the accounting break-even level of 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 accounting break-even level of sales if the firm’s tax rate is 40%?



d.
What is the NPV break-even level of sales if the firm’s tax rate is 40%?




Jun 07, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here