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Consider a project to supply Detroit with 3 1 , 0 0 0 tons of machine screws annually for automobile production. You will need an
Consider a project to supply Detroit with tons of machine screws annually for automobile production. You will need an initial $ investment in threading equipment to get the project started; the project will last for years. The accounting department estimates that annual fixed costs will be $ and that variable costs should be $ per ton; accounting will depreciate the initial fixed asset investment straightline to zero over the year project life. It also estimates a salvage value of $ after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $ per ton. The engineering department estimates you will need an initial net working capital investment of $ You require a return of percent and face a tax rate of percent on this project. Calculate the accounting, cash, and financial breakeven quantities.
Note: Do not round intermediate calculations and round your answers to the nearest whole number, eg
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