Question
FinCal Inc. proposes to invest $18 million in a new calculator production plant. Fixed costs are estimated at $3.5 million a year, and the contribution
FinCal Inc. proposes to invest $18 million in a new calculator production plant.
Fixed costs are estimated at $3.5 million a year, and the contribution margin per unit of each financial calculator will be approximately $ 15.00.
If the plant lasts for 4 years and the cost of capital is 12%, what is the cash and financial break-even level? (Tax Rate=30%)
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Foundations Of Financial Markets And Institutions
Authors: Frank J. Fabozzi, Franco Modigliani, Michael G. Ferri
2nd Edition
0136860567, 9780136860563
