Question: part A and B are given for part c A company sells Gizmos to consumers at a price of $116 per unit. The costs to

part A and B are given for part c  part A and B are given for part c A company
sells Gizmos to consumers at a price of $116 per unit. The
costs to produce Gizmos is $45 per unit. The company will sell

A company sells Gizmos to consumers at a price of $116 per unit. The costs to produce Gizmos is $45 per unit. The company will sell 17.000 Gizmos to consumers each year. The fixed costs incurred each year will be $130,000. There is an initial investment to produce the goods of $2,500,000 which will be depreciated straight line over 13 year life of the investment to a salvage value of $0. The opportunity cost of capital is 5% and the tax rate is 28%. What is operating cash flow each year? 829286.15 Correct response: 829,286.15+10 Using an operating cash flow of 829,286.15 each year, what is the NPV of this project? 5289959. Correct response: 5,289,959.98+100 Click "Verify" to proceed to the next part of the question. Find the net present value break-even level of units sold. Round your answer to the nearest whole unit Enter your response below. Number Click "Verify" to proceed

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!