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Consider a project with the following data: accounting break-even quantity = 19,000 units; cash break-even = 13,000 units; life = 5 years; fixed costs =
- Consider a project with the following data: accounting break-even quantity = 19,000 units; cash break-even = 13,000 units; life = 5 years; fixed costs = $120,000; variable costs = $23 per unit; required return = 16%. Assume the initial investment is depreciated straight line to zero over the life of the project. Ignoring the effect of taxes, find the financial break-even quantity. (22,162 units)
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