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

question 3

Multiple Choice

Calculate the NPV break-even level of sales for a project requiring an investment of $3 million and providing annual cash flows equal to 15% of sales less $250,000.None of the initial investment is recoverable.Assume the project will generate these cash flows for 10 years and the discount rate is 10%.

• A) $3,254,890
• B) $3,504,890
• C) $4,921,575
• D) $1,686,667

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