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A project has the following estimated data: price = 50 dollar per unit variable cost = 30dollar per unit fixed cost= 22.000 dollar required return
A project has the following estimated data:
price = 50 dollar per unit
variable cost = 30dollar per unit
fixed cost= 22.000 dollar
required return = 10%
initial investment = 32,000 dollar
life of the project = 4 years
salvage value= 0
- Ignoring the effect of the taxes, what is the financial break-even quantity?
- What is the degree of operating leverage at the financial break-even quantity?
If sales increase by 5%, how much will the operating cash flow be?
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