Question: Break Even Modern Artifacts can produce keepsakes that will be sold for $80 each. Non-depreciated fixed costs are $1,000 per year and variable costs are

Break Even Break Even Modern Artifacts can produce keepsakes that will be sold for

Modern Artifacts can produce keepsakes that will be sold for $80 each. Non-depreciated fixed costs are $1,000 per year and variable costs are $60 per unit. (LO2) If the project requires an initial investment of $3000 and is expected to last for 5 years and the firm pays no taxes, what are the accounting and NPV breakeven levels of sales? The initial investment will be depreciated straight-line over 5 years to a final value of zero, and the discount rate is 10 percent. How do your answers change if the firm's tax rate is 40 percent

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