Question
Initial Investment $12,000 Price $30/unit Fixed Costs $10,000/year Discount Rate 12% Variable Costs $20/unit Project Life 4 years Depreciation $3,000/year Tax rate 40% a) How
| Initial Investment | $12,000 | Price | $30/unit |
| Fixed Costs | $10,000/year | Discount Rate | 12% |
| Variable Costs | $20/unit | Project Life | 4 years |
| Depreciation | $3,000/year | Tax rate | 40% |
a) How much is the contribution margin (after-tax)?
b) What is the accounting break-even point?
c) How much is the EAC of the initial investment?
d) What is the PV break-even point?
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Pivotal Decade How The United States Traded Factories For Finance In The Seventies
Authors: Judith Stein
1st Edition
0300171501, 978-0300171501
