Question
Find the economic break-even level of quantity sold per year suppose you have found the free cash flow in your one which is 100,000. Assume
Find the economic break-even level of quantity sold per year suppose you have found the free cash flow in your one which is 100,000. Assume that the incremental fixed cost is 10,000, annual depreciation expense is 30,000, the sale price is 300 per unit, the variable cost is 200 per unit, and the tax rate is 30%. For simplicity the levels of networking capital equals zeros during the project life in addition assume the capital expenditure takes place only in year zero no additional capital expenditures are required after year zero. free cash flow is 100,000. work backward
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
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