A new product requires an initial investment of $6.48 million and will be depreciated in straight line basis to an expected salvage of zero over 5 years. The price of the new product is expected to be $35,000/unit and the variable cost per unit is $16,000. The fixed cost is $1 million. The tax rate is 20%. If the annual required return is 18 percent and the project life is 5 years, what is the financial breakeven quantity?

Select one:

114 units

341 units

68 units

109 units