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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

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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 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 A company has just made a dividend payment of $4.10 per share. The company anticipates that the dividend will increase by 5% annually. What is the maximum amount you should pay to purchase a share of the company's stock if your goal is to earn a 12% rate of return? $57.50 $58.50 $59.50 $60.50 $61.50

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