A project has a contribution margin of $15, projected fixed costs of $120,000, variable costs per unit of $12, annual depreciation of $61,000, and a projected financial break-even point of 13,601.20 units. The tax rate is 21 percent, the discount rate is 12 percent, and the project life is 3 years. What is the equivalent annual cost?

Multiple Choice

• $81,110

• $76,192

• $84,207

• $72,549

• $76,667