This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls With a tax rate = 0% (as above), what Sales Volume per year causes the New Venture to Break Even? That is, it has an NPV of zero at that volume. Feel free to try to use Goalseek to solve this.

Q: This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls
With a tax rate = 0% (as above), what Sales Volume per year causes the New Venture to Break Even? That is, it has an NPV of zero at that volume. Feel free to try to use Goalseek to solve this.

or

Q: This query relates to the spreadsheet we utilized to examine a new product venture within our lectures. The name of this spreadsheet is MODULE 4-NEW PRODUCT VENTURE-BASE CASE.xls
What annual sales volume makes the new venture break even if the tax rate is 0% (as stated above)? In other words, at that volume, its NPV is zero. Feel free to attempt to solve this with Goalseek.

• Breakeven Volume = 2000 Units
• Breakeven Volume = 1432 Units Breakeven Volume = 1631 Units
• Breakeven Volume = 1978 Units
• None of these are correct