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You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone = $43

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You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone = $43 Variable costs per = $10.45 abalone Fixed costs per year Depreciation per year = $435,000 = $130,000 = 21% Tax rate The discount rate for the company is 15 percent, the initial investment in equipment is $910,000, and the project's economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project's life and has no salvage value. a. What is the accounting break-even level for the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the financial break-even level for the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Accounting break-even 10,743.01 units level Financial break-even level 7,897.92 units a. b

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