Suppose a Solar Energy Company is considering setting up a new solar panel manufacturing company to supply solar panels. The companys chief financial officer develops the following forecast with help from production and marketing people.

ESTIMATES

Expected Size of the Market million

Expected per year

Estimated Sale Price per unit $

Estimated Variable Cost per unit $

Life of the Project years

Initial Investment $ million

Initial investment to be depreciated to a salvage value of zero over a period year

Fixed Cost per year $ million

Tax Rate

Cost of Capital

cost of capital is

At what age market share, do you attain financial breakeven point of zero NPV