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A 3-year project requires an initial fixed asset investment of $148,000, has annual fixed costs of $39,800, a contribution margin of $14.62, a tax rate
A 3-year project requires an initial fixed asset investment of $148,000, has annual fixed costs of
$39,800, a contribution margin of $14.62, a tax rate of 34 percent, a discount rate of 15 percent, and
straight-line depreciation over the project's life. The assets will be worthless at the end of the project.
What is the present value break-even point in units per year?
A. 6,086
B. 7,613
C. 7,504
D. 7,702
E. 7,911
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