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XYZ Co. is evaluating whether to invest in a project with the following information: {8 points total} Project cost = {ESE-EDGE! Project life = ve

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XYZ Co. is evaluating whether to invest in a project with the following information: {8 points total} Project cost = {ESE-EDGE! Project life = ve years Projected number of units sold per year = 10, Projected price per unit = $2 Projected 1iran'aljle cost per unit = 150 Fixed costs per year = $15,i} Required rate of return = 15% Marginal tax rate = 35% Assume straightline depreciation to zero over ve years, and ignore the halfyear rule for accounting for depreciation. a. Calculate the cash breakeven sales guantityIr for this project. {1 mark] h. Calculate the accounting break-even sales quantity for this project. {1 mark] c. Calculate the nancial breakeven sales quantity for this project. {3 marks] d. Calculate the Degree of ISiperating Leverage {DOL} at the cash breakeven, accounting breakeven, and nancial breakeven sales ouantities. {3 marks]

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