Sales needed to break even in terms of net present value

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Reference no: EM131555396

A firm just invested $800 in a fixed asset which will be depreciated straight-line to zero over its 10-year life; the salvage value is zero. Annual fixed costs will be $170. Variable costs will be 75% of sales. The tax rate is 40% and the cost of capital is 14%. Find annual sales needed to break even in terms of net present value.

Reference no: EM131555396

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