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A company is considering an investment project with the following information: Initial investment: $1,750,000; Fixed costs: $370,000; Variable costs: $13.40 per unit; Selling price: $35.40
A company is considering an investment project with the following information: Initial investment: $1,750,000; Fixed costs: $370,000; Variable costs: $13.40 per unit; Selling price: $35.40 per unit; Discount rate: 14 percent; Project life: 6 years; Tax rate: 25 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point (i.e., the number of units produced and sold to break even financially)?
42,018
39,673
36,520
38,400
40,802
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