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5. A project has the following data: Accounting breakeven quantity = 13,700 units Cash breakeven quantity = 9,600 units Life = 5 years Fixed costs
5. A project has the following data: Accounting breakeven quantity = 13,700 units Cash breakeven quantity = 9,600 units Life = 5 years Fixed costs = $185,000 Variable costs $23 per unit Required return = 12% Depreciation is calculated straight-line to zero over the project's life No changes in net working capital Ignoring taxes, find the financial breakeven quantity, by following the steps below. d. Determine the annual operating cash flow whose present value is equal to this initial cost. e. Determine the unit volume of sales that would produce this amount of OCF
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