Question: QIV.) Numeric Problem - NPV Break-Even Analysis GIPTA is planning to create agendas for 2022 which will be sold for $80 per unit. The production

QIV.) Numeric
QIV.) Numeric Problem - NPV Break-Even Analysis GIPTA is planning to create

Problem - NPV Break-Even Analysis GIPTA is planning to create agendas for 2022 which will be sold for $80 per unit. The production requires an initial investment of $2,000 which will be depreciated straight-line during its 5-year useful life to a final value of zero. Production fixed costs are assumed to be $1,700 and have no depreciation; and the variable costs are predicted to be $60 per agenda. Assume that the discount rate is 12%. (For all the requirements, do not round intermediate calculations. Round your answer to the nearest whole number.) a. Calculate the accounting break-even level of sales. Assume that GIPTA pays no taxes. b. Calculate the NPV break-even level of sales. Assume that GIPTA pays no taxes, c. Calculate the accounting break-even level of sales. Assume that GIPTA pays 35% tax. d. Calculate the NPV break-even level of sales. Assume that GIPTA pays 35% tax. a Acounting break-even level of sales b. NPV break even level of sales c. Acounting break even level of sales d. NPV break oven level of sales units units units units

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