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For the next 4 questions suppose the following data holds: Initial Investment Fixed Costs Depreciation Discount Rate $5,000 $6,000/year $1,250/year 12% Variable Costs $20/unit
For the next 4 questions suppose the following data holds: Initial Investment Fixed Costs Depreciation Discount Rate $5,000 $6,000/year $1,250/year 12% Variable Costs $20/unit Price $30/unit Project Life 4 years Tax rate 40% 55. How much is the contribution margin (after-tax)? 56. What is the accounting break-even point? 57. How much is the EAC of the initial investment? 58. What is the PV break-even point?
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
9th edition
290-1259222138, 1259222136, 978-1259222139
