A project is financed by Equity and Debt. The cost of debt is 10%; the cost of equity is 10%. The market value of the debt is $250,000 and there are 250,000 shares trading at $1 each. Assume that there are no taxes. The project is depreciated straight-line to a book value of zero over the life of the project. The equipment will have no salvage value. Annual fixed costs are $50,000. The contribution margin is $12.5. The project has a 5-year life. What is the cash, accounting, and financial break-even quantity?

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A B D E F G H T J L M N O P Q R 1 E 2 PS 3 D 4 Value of Project 5 P 7 V 8 Contribution Margin 9 10 Depreciation 11 FC 12 13 CBE 14 15 16 ABE 17 18 19 We 20 Wps 21 Wd 22 Re 23 Rps 24 Rd 25 WACC 26 OCF 27 28 FBE 29 30