• The Mini-Max Company has the following cost information on its new prospective project: Initial investment: $700 Fixed costs are $ 200 per year Variable costs: $ 3 per unit Depreciation: $ 140 per year Price: $8 per unit Discount rate: 12% Project life: 3 years Tax rate: 34% Assume that you sell the machine for book value at the end of year 3 so there is no capital gain or loss on the initial investment. How many units per year do they have to sell to break even from an NPV standpoint?

  
  

 

Answer rating: 100% (QA)

To analyze the feasibility of MiniMax Companys prospective project well calculate the breakeven poin... View the full answer