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Calculate the financial break even (factoring in taxes) by pen and paper using this information show your work seonbukser/tem_27222058/group/cafuzezadunststofftate defendatud Consider the following project: A

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Calculate the financial break even (factoring in taxes) by pen and paper using this information show your work seonbukser/tem_27222058/group/cafuzezadunststofftate defendatud Consider the following project: A new product requires an initial investment of $5 million and will be depreciated to an expected salvage of zero over 5 years. The price of the new product is expected to be $25,000, and the variable cost per unit is $15,000. The fixed cost is $1 million. Required return is 18% Tax rate is 21% . What is the accounting break-even point each year? Depreciation - 5,000,000/5 - 1,000,000 Q = (1.000.000 1.000.000)/(25,000 - 15.000) = 200 units

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