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What Is the NPV Break-Even for a Project Costing $4,000,000

Question 109

Multiple Choice

What is the NPV break-even for a project costing $4,000,000 and generating cash flows according to .30 *sales - $450,000? Assume the project will last 10 years and requires a discount rate of 12 percent.


A) $2,093,654
B) $2,359,047
C) $3,859,798
D) $13,783,333 5.6502(.3 sales - 450,000) = 4,000,000
1) 69506 sales - 2,542,590 = 4,000,000
1) 69506 sales = 6,542,590

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