what is the break-even?

what is the accounting break-even?

what is the financial break-even?

Wettway Sailboat Corporation is considering whether to launch its new Margo-class sailboat. The selling price will be $55,000 per boat. The variable costs will be about half that, or $34,000 per boat, and fixed costs will be $605,000 per year. The total investment needed to undertake the project is $4,500,000. 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 16 percent on new projects. OCF Tex D FC+ 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 25 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Cash break-even Accounting break-even Financial break-even 100.24 59.42