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Modern Artifacts can produce keepsakes that will be sold for $50 each.  Nondepreciation fixed costs are $2,900 per year, and variable costs are $30 per unit.  The initial investment of $3,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 14%.

 

A. What is the accounting break-even level of sales if the firm pays no taxes? (Round your answer to the nearest whole number)

B. What is the NPV break-even level of sales if the firm pays no taxes? (Round your answer to the nearest whole number)

C. What is the accounting break-even level of sales if the firm's tax rate is 40%? (Round your answer to the nearest whole number)

D. What is the NPV break-even level of sales if the firm's tax rate is 40%? (Round your answer to the nearest whole number)

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