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Question
| Year 0 | Year 0 | Year 1 | Year 2 |
| Revenue | $15,000 | $15,000 | |
| Variable Cost | ($5,000) | ($5,000) | |
| Depreciation | ($200) | ($200) | |
| Fixed Cost | ($350) | ($350) | |
| Operating Income | $9,450 | $9,450 | |
| Taxes at 30% | ($2,835) | ($2,835) | |
| NOPAT | $6,615 | $6,615 | |
| Capital Investment | ($5,753) | ||
| Free Cash Flow | $6,815 | $6,815 | |
| NPV | $6,074.69 |
Forecasts for project ST are shown above. Using a discount rate of 10%, the project has a positive NPV of $6,074.69. Estimate within $100 the level of sales revenue that will result in an NPV of $0.00. No other variables will change.
Answer
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