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A projects initial investment = $480,000; variable cost = $80; fixed cost = $85,000; price = $110; life = 6 years; required return = 12%;
A projects initial investment = $480,000; variable cost = $80; fixed cost = $85,000; price = $110; life = 6 years; required return = 12%; Straight line depreciation. Before-tax salvage value = $40,000; initial net working capital investment = $40,000. Tax rate = 21%. What is the financial break-even point?
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