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Seivewright Cobbler, Inc

Question 115

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Seivewright Cobbler, Inc.can produce shoes that will be sold for $160 each.Non-depreciated fixed costs are $2,000 per year and variable costs are $120 per unit.If the project requires an initial investment of $6,000 and is expected to last for 5 years and the firm pays no taxes, what are the accounting and NPV break-even levels of sales?

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The initial investment will be...

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