Question: A project has a 5 year life, a 16% required rate of return, and an initial investment of $300,000. Annual fixed costs are estimated at

A project has a 5 year life, a 16% required rate of return, and an initial investment of $300,000. Annual fixed costs are estimated at $100,000 while variable costs are projected at $12 a unit. The company plans to sell the units for $16 each. What is the NPV break-even level of revenue? Ignore taxes and the impact of depreciation.

Please fine the answer the following steps: 1. CFop 2. PV of CFop 3. Calculate where NPV=0

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LO6.2 Explain the usefulness of the total-revenue test for price elasticity of demand.

LO6.1 Discuss price elasticity of demand and how it is calculated.

LO6.3 List the factors that affect price elasticity of demand and describe some applications of price elasticity of demand.