XYZ Ltd proposes to invest $15 million in a new financial calculator-making plant. Fixed costs...
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XYZ Ltd proposes to invest $15 million in a new financial calculator-making plant. Fixed costs are $3 million per year. A financial calculator costs $10 per unit to manufacture and sells for $30 per unit. If the plant lasts for four years and the cost of capital is 16 percent, what is the break-even level (i.e., NPV = 0) of annual sales? (Assume that revenues and costs occur at the end of each year. Assume no taxes.) Round to the nearest 1,000 units.
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