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An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over 4 years, which is the
An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over 4 years, which is the life of the project. The sales price is set at $19.95 a unit, the annual fixed costs are $237,000, and the variable cost per unit is $8.87. The tax rate is 22 percent and the discount rate is 11 percent. At what sales quantity per year will the investment break even on a financial basis?
Group of answer choices
29,787 units
29,143 units
27,886 units
28,096 units
30,308 units
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