Question: Break even. Modern artifacts can produce keepsakes that will be sold for $80 each. Non depreciated fixed cost are $1000 per year and variable cost

Break even. Modern artifacts can produce keepsakes that will be sold for $80 each. Non depreciated fixed cost are $1000 per year and variable cost are $60 per unit.

a) if the project requires an initial investment of $3000 and is expected to last for 5 years. the firm pays no taxes, what are the accounting and NPV break even level of sales? The initial investment will be depreciated straight line over 5 years to the final value 0, and the discount rate is at 10%.

b) how do the answer change if the firm's tax rate changes to 40%

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