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Problem 11-25 Break-Even and Taxes [LO3] Wettway Sailboat Corporation is considering whether to launch its new Margo-class sailboat. The selling price will be $43,000 per

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Problem 11-25 Break-Even and Taxes [LO3] Wettway Sailboat Corporation is considering whether to launch its new Margo-class sailboat. The selling price will be $43,000 per boat. The variable costs will be about half that, or $22,000 per boat, and fixed costs will be $485,000 per year. The total investment needed to undertake the project is $3,300,000. This amount will be depreciated straight-line to zero over the 7 -year life of the equipment. The salvage value is zero, and there are no working capital consequences. Wettway has a required return of 13 percent on new projects. Q=PvFC+1TCoCVTCD Use the above expression to find the cash, accounting, and financial break-even points for Wettway Sallboat. Assume a tax rate of 23 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

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