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Question 22 (3 points) When the tax rate is not zero, the cash break-even quantity is given by the equation shown in the textbook in
Question 22 (3 points) When the tax rate is not zero, the cash break-even quantity is given by the equation shown in the textbook in problem 25 on page 379. Use the equation shown in the textbook in problem 25 on page 379 for this question. A company has the following estimates for a new five-year project: Cost of machine = $700,000, price = $1,100 per unit, variable cost = $90 per unit, fixed costs = $380,000, and quantity = 5,000 units. Suppose the company believes that all of these estimates are accurate only to within plus or minus 15 percent. The cost of the machine will be depreciated to zero over five years and will have no salvage value. The tax rate is 23 percent. What is the cash break-even quantity for the base-case scenario? Enter your answer as units with 2 digits to the right of the decimal point in the box shown below. Your
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