Calculate the NPV break-even level of sales for a project requiring an investment of $3,000,000 and providing as cash flows: .15 × sales less $250,000. Assume the project will generate these cash flows for 10 years and that the discount rate is 10 percent.

A) $19,686,667
B) $3,504,890
C) $4,921,549
D) $3,254,890

Answer: C) $4,921,549

Business

You might also like to view...

The ________ establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses

A) common law of contracts B) Restatement of the Law of Contracts C) Uniform Computer Information Transactions Act D) Uniform Commercial Code

Business

Refer to Table 6-1. Using a weighted moving average with weights of 0.1, 0.3, and 0.6, the

forecast sales for periods 4 and 5 are approximately A) 363 and 399. B) 383 and 418. C) 403 and 435. D) 418 and 448. E) 435 and 460.

Business