What is the NPV break-even level of sales

Assignment Help Financial Management

Reference no: EM131609731

Modern Artifacts can produce keepsakes that will be sold for $70 each. Nondepreciation fixed costs are $2,000 per year, and variable costs are $35 per unit. The initial investment of $4,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 10%.

What is the NPV break-even level of sales if the firm’s tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Reference no: EM131609731

Questions Cloud

Human resource management function : Generally, what has influenced the Human Resource Management function over the past ten years toward serving in the role

Define vogl net exposure to each foreign currency in dollar : Vogl Co. is a U.S. firm conducting a financial plan for the next year. It has no foreign subsidiaries, but more than half of its sales are from exports.

Examine the impact of cyberattacks on potential investors : "Cyberattacks in Public Companies" - Examine the impact of cyberattacks on potential investors in a public company

Is risk in looking at too many attributes on investment : So how exactly would you use NPV in the decision making process? Is there a risk in looking at too many attributes on an investment?

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

What are the medicinal values of black pepper, bay leaf : What are the medicinal values of black pepper, bay leaf, tulsi, haldi, aloe, cumin seeds, fennel seeds, pumpkin seeds, coriander seeds and neem??

Explain how us-based mnc issuing bonds denominated in euros : Explain the difference in the cost of financing with foreign currencies during a strong-dollar period versus a weak-dollar period for a U.S. firm.

Target capital structure of common stock : Mullineaux Corporation has a target capital structure of 70 percent common stock, 10 percent preferred stock, and 20 percent debt.

Project to have positive NPV and negative IRR : It is possible for a project to have positive NPV and negative IRR?

User Account

All Pages