KMW Inc Sells Finance Textbooks for $150 Each

Multiple Choice

KMW Inc. sells finance textbooks for $150 each. The variable cost per book is $30 and the fixed cost per year is $30,000. The process of creating a textbook costs $150,000 and the average book has a life span of three years. What is the economic or NPV break-even number of books that must be sold each year given a discount rate of 12 percent?

A) 156
B) 191
C) 235
D) 771