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# 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

 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 firmâs 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 firmâs tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
 NPV break-even level of sales units

Jul 05 2021 View more View Less Subscribe To Get Solution