How many bottles of sour grapes must carr sell each year

Reference no: EM13300673

Carr Corporation plans to market a new product , bottels of sour grapes. each bottle will sell for $5. Fixed expenses for the project are $35,000 per year, and variable expenses represent 30% of sales. the initial cost of the four year project is $1000,000, which will be depreciated straight-line over the life of the project to a salvage value of zero.The company's marginal income tax rate is 30%. How many bottles of sour grapes must carr sell each year to break even on an economic NPV basis? Assume the projects hurdle rate is 10%.

A. 108,152
B. 229,832
C. 357,143
D. 250,000

Reference no: EM13300673

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