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

---

Definitions:

Evolutionary Argument

A rationale derived from evolutionary biology, suggesting that certain traits or behaviors have developed over time due to the advantages they provided for survival and reproduction.

Cultural Organization

An entity that works to promote, preserve, research, or manage the cultural heritage, customs, or entertainment of a specific group or society.

Social Capital

The networks, relationships, and norms that facilitate collective action and cooperation among groups and communities, contributing to societal and economic benefits.

Social Organization

Is the orderly arrangement of social interaction.