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Consider the following project: A new product requires an initial investment of $4000 and will be depreciated to an expected salvage of zero over 8
Consider the following project:
A new product requires an initial investment of $4000 and will be depreciated to an expected salvage of zero over 8 years
The price of the new product is expected to be $30, and the variable cost per unit is $10
The fixed cost is $1000the required return is 12%. What is the Accounting Break-even, what is the cash Break-even and what is the Financial Break even?
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