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13.The Solar Calculator Company proposes to invest $5 million in a nevw calculator-making plant. Fixed costs are $2 million per year. A solar calculator costs $5 per unit to manufacture and sells for $20 per unit. If the plant lasts for 3 years and the cost of capital is 12%, what is the break-even level (that is, NPV 0) of annual sales? Assume no taxes; assume the salvage value of the investment after 3 years is zero; and round your answer to the nearest 1,000 units Hint: Calculate the annual cash flow that justifies a $5-million investment for 3 years at 12%. a. 133,000 units b. 272,000 units c. 228,000 units d. 244,000 units
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