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Wettway Sailboat Corporation is considering whether to launch its new Margo-class sailboat. The selling price will be $58,000 per boat. The variable costs will be

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Wettway Sailboat Corporation is considering whether to launch its new Margo-class sailboat. The selling price will be $58,000 per boat. The variable costs will be about half that, or $37,000 per boat, and fixed costs will be $635,000 per year. The total Investment needed to undertake the project is $4,800,000. This amount will be depreciated straight-line to zero over the 7-year life of the equipment. The salvage value is zero, and there are no working capital consequences. Wettway has a required return of 19 percent on new projects. FC + OCF Tex D 1-TC PU Use the above expression to find the cash, accounting, and financial break-even points for Wettway Sailboat. Assume a tax rate of 23 percent. (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Cash break-even Accounting break-even Financial break-even 30.24% 62.89 100.59

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