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 of $237,000, and the variable cost per unit is $8.87. The tax rate is 34 percent and the discount rate is 11 percent. At what sales quantity per year will the investment break even on an accounting basis?

At what sales quantity per year will the investment break even on a financial basis?

Why is there a difference between the two answers?