Calculate the NPV Break-Even Level of Sales for a Project

question 27

Multiple Choice

Calculate the NPV break-even level of sales for a project requiring an investment of $3,000,000 and providing as cash flows: .15 *sales less $250,000.Assume the project will generate these cash flows for 10 years and that the discount rate is 10 percent.

• A)$3,254,890
• B)$3,504,890
• C)$4,921,549
• D)$19,686,667 PV cash flows = investment
• 6)14457(.15 sales - 250,000) = $3,000,000
• )92169 sales - 1,536,142.50 = $3,000,000
• )92169 sales = $4,536,142.50

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