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Use all of the information in the previous break-even quantitative question (this part hasn't changed): You are trying to determine the financial break-even (as we
Use all of the information in the previous break-even quantitative question (this part hasn't changed): You are trying to determine the financial break-even (as we defined in class) market size for the following project. Your initial investment cost is $150 million, and that investment will depreciate in straight-line form over the 20-year life of the project. There are no new NWC requirements, and there will be no salvage value at the end of the 20 years. The tax rate is 25%. The discount rate is 20%. The possible values for Market Share, Price/Unit, VC/Unit, and Fixed Costs are below. Pessimistic Expected Optimistic Market Share 4.0% 5.0% 6.0% Price/unit $2350 $2500 $2570 VC/Unit $1900 $1540 $1100 FC $3.5 Million $2 Million $0.5 Million But now assume that you found the break even EBIT to be $30 million. Determine the financial break-even Market Size. Input your answer in units, rounded to the nearest unit (so if your answer is 111.111.11, input 111,111)
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