project under consideration costs 600,000, has a five-year life, and has no salvage value. Depreciation is straight-line to zero. The required return is 15%, and the tax rate is 34%. Sales are projected at 400 units per year. Price per unit is $3,000, variable cost per unit is $1,900, and fixed costs are $250,000 per year.

1. Given the above base case projections, what is the accounting break-even sales for this project? Ignore taxes.

2. Given the above base case projections, what is the cash break-even sales for this project? Ignore taxes.

3. What is the financial breakeven point?