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The economic life of the machine we purchased for 6,000,000 TL is 5 years, the depreciation method is linear, cost of capital is 20%, and

The economic life of the machine we purchased for 6,000,000 TL is 5 years, the depreciation method is linear, cost of capital is 20%, and the tax rate is 20%. The project (this machine) will have 0 TL salvage value after 5 years. We are informed that projected revenues for the next 5 years are 4,200,000 TL per year, variable costs are 25 percent of the projected revenue, projected fixed costs are 600,000 TL per year for the next 5 years.

Accordingly, calculate the amount of revenues from a point of accounting and finance break-even analysis

Investment

(Year 0)

Cash Flows in years 1-5

Projected

Accounting Break-Even

Financial Break - Even

Initial Investment

Revenues

Costs

Variable Costs

Fixed Costs

Depreciation

Pretax Profit

Tax (20%)

Profit After Tax

Cash Flow from Operations(CFFO)

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