A company sells Widgets to consumers at a price of $104 per unit. The costs...
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Finance
A company sells Widgets to consumers at a price of $104 per unit. The costs to produce Widgets is $37 per unit. The company will sell 10,000 Widgets to consumers each year. The fixed costs incurred each year will be $110,000. There is an initial investment to produce the goods of $3,600,000 which will be depreciated straight line over 9 year life of the investment to a salvage value of $0. The opportunity cost of capital is 10% and the tax rate is 38%. What is operating cash flow each year? Correct response: 499,20010 Click "Verify" to proceed to the next part of the question. Using an operating cash flow of 499,200 each year, what is the NPV of this project? Given a net present value of $725,095.31, should the company accept or reject this project? Reject Accept Correct response: Reject Click "Verify" to proceed to the next part of the question. Find the net present value break-even level of units sold. Round your answer to the nearest whole unit Enter your response below
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