The financial calculator company proposes to invest 12


The Financial Calculator Company proposes to invest $12 million in a new 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 20 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.

Please give detailed steps to complete.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The financial calculator company proposes to invest 12
Reference No:- TGS02682453

Expected delivery within 24 Hours