Question: Problem 10-14 NPV Break-Even Analysis (LO2) Modern Artifacts can produce keepsakes that will be sold for $50 each. Nondepreciation fixed costs are $2,900 per year,

Problem 10-14 NPV Break-Even Analysis (LO2) Modern Artifacts can produce keepsakes that will be sold for $50 each. Nondepreciation fixed costs are $2,900 per year, and variable costs are $30 per unit. The initial investment of $3,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 14%. a. What is the accounting break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Acounting break-even level of sales units b.

Problem 10-14 NPV Break-Even Analysis (LO2)

Modern Artifacts can produce keepsakes that will be sold for $50 each. Nondepreciation fixed costs are $2,900 per year, and variable costs are $30 per unit. The initial investment of $3,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 14%.

a.	What is the accounting break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Acounting break-even level of sales

units

b.	What is the NPV break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

NPV break-even level of sales

units

c.	What is the accounting break-even level of sales if the firms tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Acounting break-even level of sales

units

d.	What is the NPV break-even level of sales if the firms tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

NPV break-even level of sales

units

is the NPV break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.) NPV break-even level of sales units c. What is the accounting break-even level of sales if the firms tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Acounting break-even level of sales units d. What is the NPV break-even level of sales if the firms tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) NPV break-even level of sales units

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