Consider Bloopers mining project. Suppose that by investing an additional $2,000,000 initially, Blooper could reduce variable costs to 20% of sales. Use Spreadsheet 10.1.

a. Find the incremental NPV for the increased investment. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Incremental NPV = ?

b. At what level of sales will accounting profits be unchanged if the firm makes the new investment? Assume the equipment receives the same straight-line depreciation treatment as in the original example. (Hint: Focus on the projects incremental effects on fixed and variable costs.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. Enter your answer in thousands.)

Sales revenue ___?___ thousand.

c. What is the NPV break-even point in total sales if the firm invests in the new equipment? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. Enter your answer in thousands.)

NPV break-even ___?___ thousand.