Modern Artifacts can produce keepsakes that will be sold for $150 each. Nondepreciation fixed costs are $2,400 per year, and variable costs are $130 per unit. The initial investment of $6,500 will be depreciated straight-line over its useful life of five years to a final value of zero, and the discount rate is 10%.
What is the accounting break-even level of sales if the firm pays no taxes?
What is the NPV break-even level of sales if the firm pays no taxes?