The Mini-Max Company has the following information on its new prospective project. Calculate the NPV break-even level

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The Mini-Max Company has the following information on its new prospective project. Calculate the NPV break-even level of unit sales.

Initial investment: $700
Fixed costs: $200 per year
Variable costs: $3 per unit
Depreciation: $140 per year
Price: $8 per unit
Discount rate: 12%
Project life: 5 years
Tax rate: 34%

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Fundamentals of Financial Management

ISBN: 978-0324597707

12th edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Apr 23, 2024 03:58 AM

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The Mini-Max Company has the following information on its new prospective project. Calculate the NPV break-even level

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To calculate the NPV breakeven level of unit sales we first need to calculate the total annual cash ... View the full answer

Fundamentals of Financial Management

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