13. What is the quantity of sales at which the NPV of the project is zero?...

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13. What is the quantity of sales at which the NPV of the project is zero?...

13. What is the quantity of sales at which the NPV of the project is zero? Investment= $500,000; variable cost= $120; fixed cost= $65,000; product price= $150; life = 6 years; Ignore taxes and NWC. Required return rate= 14%. Please provide entire equation used.

5,415 units

5,772 units

5,993 units

6,453 units

6,663 units

business finance

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Answer 1

Answer #1

NPV 0, means present value of cash inflows to be equal to initial cash outflow Annual cash inflow =$128,578.75 [500000/(PVIFA

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Answer 2

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13. What is the quantity of sales at which the NPV of the project is zero?...

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