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A project has the following costs: fixed costs of $200/year, an initial investment of $700, variable costs of $3/unit, depreciation of $140/year, selling price of
A project has the following costs: fixed costs of $200/year, an initial investment of $700, variable costs of $3/unit, depreciation of $140/year, selling price of $8/unit, and tax rate of 34%. If the discount rate is 12% and the project life will last for 3 years, what is the present value break-even point?
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