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Can you answer/correct the cash break-even and financial break even portion please. Wettway Sailboat Corporation is considering whether to launch its new Margo-class sailboat. The
Can you answer/correct the cash break-even and financial break even portion please.
Wettway Sailboat Corporation is considering whether to launch its new Margo-class sailboat. The selling price will be $50,000 per boat. The variable costs will be about half that, or $29,000 per boat, and fixed costs will be $555,000 per year. The total investment needed to undertake the project is $4,000,000. This amount will be depreciated straight-line to zero over the 5-year life of the equipment. The salvage value is zero, and there are no working capital consequences. Wettway has a required return of 11 percent on new projects. CF-TCX D FC +TIC Q -v Use the above expression to find the cash, accounting, and financial break-even points for Wettway Sailboat. Assume a tax rate of 25 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) (X Answer is complete but not entirely correct. 26.43X Cash break-even 64.52 Accounting break-even 1,082,281.00X Financial break-even
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