ABC company proposes to invest $8 million in construction of a new plant to make widgets. Annual fixed costs associated with operating the plant are…

ABC company proposes to invest $8 million in construction of a new plant to make widgets. Annual fixed costs associated with operating the plant are….

  1. The net present value associated with constructing the plant assuming that the company sells 200,000 units annually. 
  2. The internal rate of return associated with constructing the plant assuming that the company sells 200,000 units annually. 
  3. The breakeven number of units sold annually that would generate a zero NPV. 
  4. The breakeven number of units sold annually that would generate a 15% IRR.

ABC company proposes to invest $8 million in construction of a new plant to make widgets. Annual fixed costs associated with operating the plant are…