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Posted on Jul 24, 2024

Given the information below for a project being considered by a firm, calculate the projects present value break-even point (also called the financial break-even point).

Initial investment: $900

Fixed Cost: $230 per year

Variable Cost: $4 per unit

Depreciation: $225 per year

Price: $10 per unit

Project Life: 4 years

Tax Rate: 35%

Discount Rate = 12%

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