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A project has an estimated sales price of $71 per unit, variable costs of $44 per unit, fixed costs of $57,000, a required return of
A project has an estimated sales price of $71 per unit, variable costs of $44 per unit, fixed costs of $57,000, a required return of 14 percent, an initial investment of $79,500, no salvage value, and a life of four years. Ignore taxes. Assume that depreciation is straight-line to zero over the life of the project.
What is the financial break-even point for this project?
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