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18 The following data apply to the next three questions. The Value Curve Company is evaluating a project that costs $500,000, has a five-year life,
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The following data apply to the next three questions. The Value Curve Company is evaluating a project that costs $500,000, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 400 units per year. Price per unit is $3,000, variable cost per unit is $1.900, and fixed costs are $250,000 per year. The tax rate is 35%, and the required return is 15%. Ignore taxes in answering What is the financial break-even sales level for this project? a. 293 units/year. O b. 325 units/year. Oc. 398 units/year. O d. 413 units/year. e. None of the above. Unsure Step by Step Solution
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