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. Question 3 5 out of 5 points Find the financial break even given the following information: Project Initial Outlay is $5,000 with straight line
. Question 3 5 out of 5 points Find the financial break even given the following information: Project Initial Outlay is $5,000 with straight line depreciation; Project Life = 5 Years; Discount Rate = 10 %. Total Production Costs = FC + VC = $15,000 Per Year, Variable Costs = $2 per unit; Unit Sales = 4,000 units, Price = $5 per unit, and Ignore Taxes. Selected Answer: 2,773 Units Correct Answer: . 2,773 Units Question 4 3 out of 5 points A project requires an initial investment of $5,000, straight-line depreciable to zero over 5 years. The discount rate is 12%. Your tax bracket is 35% and you receive a tax credit for negative earnings in the year in which the loss occurs. Additional information for variables with forecast errors are shown below. Base Lower Upper case bound bound Unit sales 2,000 1,200 2,800 Price/unit $15 $13 $17 Variable $10 $8 cost/unit $12 Fixed costs $4,000 $3,250 $4,750 What is the worst case NPV for the project? Selected Answer: -$12,056 Correct Answer: -$12,056
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