1. Mod Inc. sells parts for $300 each. Fixed costs are $7,500 per year and...
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1. Mod Inc. sells parts for $300 each. Fixed costs are $7,500 per year and variable costs are $175 per unit. If the initial investment is $22,500 and is expected to last for 15 years and the firm pays 30% taxes, what is the accounting and economic break-even level of sales respectively? The initial investment will be depreciated straight-line over 15 years to a final value of zero, and the discount rate is 12%. Please show with Excel
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