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A new five-year project requires variable cost of $3 and fixed cost of $100,000. Sales per year are estimated to be 100,000 units at $7
A new five-year project requires variable cost of $3 and fixed cost of $100,000. Sales per year are estimated to be 100,000 units at $7 per unit. Depreciation is straight-line at $50,000 per year. Ignoring taxes, what is the financial break-even quantity for this project if the required return is 9%?
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