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Question 2 (6 points) A project has the following estimated data: price = $800 per unit: variable costs = $650 per unit: fixed costs =

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Question 2 (6 points) A project has the following estimated data: price = $800 per unit: variable costs = $650 per unit: fixed costs = $900.000; required return = 8%; initial investment = $5,000,000: salvage value = $50,000; life = 14 years, i. What is the financial break-even quantity? [2 marks] ii. What is the operating cash flow at the financial break-even quantity? [2 marks] iii. What is the degree of operating leverage at the financial break-even quantity? (2 marks] Q R

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