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A company is considering a 5-year project that opens a new product line and requires an initial outlay of $82,000. The assumed selling price is

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A company is considering a 5-year project that opens a new product line and requires an initial outlay of $82,000. The assumed selling price is $96 per unit, and the variable cost is $70 per unit. Fixed costs not including depreciation are $16,000 per year. Assume depreciation is calculated using stright-line down to zero salvage value. If the required rate of return is 12% per year, what is the financial break-even point? (Answer to the nearest whole unit.) After studying the economy, you forecast that there is a 70% chance of a good economy next year and a 30% chance of a poor economy if the economy is good, you estimate that a stock you have been following would have a 15% return. Likewise, if the economy is poor, you estimate a -7% return for that same stock. The risk free rate is 4 5% what is the expected return for this stock? (Answer to the nearest tenth of a percent, but do not use a percent sign) Risk-Free Rate = 4.5

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