Calculate the number of sunglasses the company

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A company considers investing in a new machine so it can produce a new type of sunglasses. The cost of the new machine is $120,000 and its lifespan is five years. The expected variable costs are $55 per pair of glasses and the expected sell price is $75. Additionally, the company plans to spend $10,000 annually on marketing the new sunglasses in each of the five years.

Calculate the number of sunglasses the company needs to sell in order to reach an NPV of zero (breakeven point) if the discount rate is 10%.

Reference no: EM132548138

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