Solved

Calculate the NPV Break-Even Level of Sales for a Project

Question 37

Multiple Choice

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) $3,254,890
B) $3,504,890
C) $4,921,549
D) $19,686,667 PV cash flows = investment
6) 14457(.15 sales - 250,000) = $3,000,000
) 92169 sales - 1,536,142.50 = $3,000,000
) 92169 sales = $4,536,142.50

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents