A project has annual NPV break-even level of sales of $4,991,000. The annual net cash flows can be calculated as (0.22 x sales- $205,000 ). The project has a 8-year life and the company's cost of capital is 9.20%. Ignoring the impact of depreciation and taxes, what is the most that should be invested in this project ?

Answer rating: 100% (QA)

To determine the maximum amount that should be invested in the project we need to calculate the pres... View the full answer