We are evaluating a project that costs $842,468, has an eight-year life, and has no salvage value.
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Question:
We are evaluating a project that costs $842,468, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 55,300 units per year. Price per unit is $44, variable cost per unit is $19, and fixed costs are $417,491 per year. The tax rate is 35%, and we require a return of 21% on this project.
Calculate the Financial Break-Even Point. (Round answer to 0 decimal places. Do not round intermediate calculations)
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