Ch6man.wpd - Sharif

To find the NPV breakeven value for the incremental cash flow from operations we do the following calculation: N i PV FV PMT Result 2 10 -40,000 0 ? 23,047.62 Now we must find the number of units per year (Q), that corresponds to a net cash flow of this amount. CF = (1 - tax rate) (Revenue - Cash expenses) + tax rate x Depreciation ................
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