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A company is considering an investment in a new product with a 1 0 - year horizon ( product will be sold for 1 0
A company is considering an investment in a new product with a year horizon product will be sold for years The upfront investment is $ million and it is assumed to depreciate on a straightline basis for years, with no residual value. Fixed costs are assumed to be $ per year. The company estimates variable cost per unit v to be $ and expects to sell each unit for $ There are no taxes and the required rate of return is per year. Assume that the investment would occur today, and all future cashflows will occur at the end of each year beginning in one year.
What is the annual financial breakeven quantity? Blank Fill in the blank, read surrounding text. Keep at least decimals for intermediate answers. Round your final answer UP to the next highest WHOLE unit. ie would be rounded to
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