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Given the forecasted data, determine the number of planes that the company must produce in order to break even, on both accounting basis and NPV
Given the forecasted data, determine the number of planes that the company must produce in order to break even, on both accounting basis and NPV basis. The year project initial investment is $ million, each plane sold for $ million, the variable cost is $ million each plane, the fixed cost is $ million, the depreciation uses straightline method, tax rate is and the companys cost of capital is Please calculate accounting breakeven and economic breakeven for the project.
What is the economic breakeven for the project?
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