10 00 peints Problem 11-25 Break-Even and Taxes [LO3] Wettway Sailboat Corporation is considering whether to launch its new Margo-class sailboat. The selling price will be $40,000 per boat. The variable costs will be about half that, or $20,000 per boat, and fixed costs will be $800,000 per year The Base Case: The total investment needed to undertake the project is $3,000.000 This amount will be depreciated straight- line to zero over the five-year life of the equipment. The salvage value is zero, and there are no working capital consequences Wettway has a 12 percent required return on new projects Use the above expression to find cash, accounting and financial break-even points for Wettway Sailboat. Assume a tax rate of 38 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Cash break -even P nancial break evern References eBook & Resources