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. . As the finance manager of a company you are presented with the following project. The company is considering the purchase of a new

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. . As the finance manager of a company you are presented with the following project. The company is considering the purchase of a new piece of equipment which would cost $200,000. This equipment will have a four-year useful life and have a salvage value of so at the end of the four-year period. It is estimated that the incremental overhead for running the equipment will be $20,000 per year. they can sell the shelves for $25 each. the cost of sales is $15 per shelf. For simplicity, we assume the levels of net working capital are zeros during the whole project life. The company has a 30% marginal tax rate and a cost of capital of 15% Question: How many shelves the company needs to sell such that it will achieve an economic break-even

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