Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help determine how to find the financial break even level You are considering investing in a company that cultivates abalone for sale to local

please help determine how to find the financial break even level
image text in transcribed
You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: $44.60 Sales price per abalone Variable costs per abalone Fixed costs per year Depreciation per year Tax rate = $11.25 $498,000 = $102,000 = 21% The discount rate for the company is 13 percent, the initial investment in equipment is $918,000, and the project's economic life is 9 years. Assume the equipment is depreciated on a straight-line basis over the project's life and has no salvage value. a. What is the accounting break-even level for the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the financial break-even level for the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is not complete. a. 17.991 00 units Accounting break-even level Financial break-even level b. units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

HSBA Handbook On Ship Finance

Authors: Schinas

2015th Edition

3662434091, 978-3662434093

More Books

Students also viewed these Finance questions

Question

a. When did your ancestors come to the United States?

Answered: 1 week ago

Question

d. What language(s) did they speak?

Answered: 1 week ago

Question

e. What difficulties did they encounter?

Answered: 1 week ago