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ou are considering investing in a project that cultivates abalone for sale to local restaurants. The discount rate for the company is 15%, the initial
ou are considering investing in a project that cultivates abalone for sale to local restaurants. The discount rate for the company is 15%, the initial investment in equipment is $360,000, and the project's life is 7 years. The equipment is depreciated on a straight line basis over the project's live ($51,429 per year). Use the following information:
Price per unit$80.00
Variable cost per unit$5.40
Fixed cost per year$750,000.00
Depreciation$51,429.00
Tax rate35%
What is the accounting break-even point? and What is the financial break-even point?
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