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You are considering investing in a conpany that cultivates abalone for sale to local restaurants. use the following information: sale price per abalone= $43.70 variable
You are considering investing in a conpany that cultivates abalone for sale to local restaurants. use the following information: sale price per abalone= $43.70 variable cost per abalone= $10.80 fixed cost per year = $462,000 depreciation per year= $137,000 tax rate= 22% The discount rate for the conpany id 14 percent, the initial investment in equipment is $959,000, and the project's economic life is 7 years. Assume the equipment is depreciated on a straight-line basis over the projects life and has no salvage value. what is the accounting break-even level for the project? what is the financial break-even level for the project?
sale price per abalone= $43.70
variable cost per abalone= $10.80
fixed cost per year = $462,000
depreciation per year= $137,000
tax rate= 22%
The discount rate for the conpany id 14 percent, the initial investment in equipment is $959,000, and the project's economic life is 7 years. Assume the equipment is depreciated on a straight-line basis over the projects life and has no salvage value.
what is the accounting break-even level for the project?
what is the financial break-even level for the project?
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Foundations Of Business
Authors: William M. Pride, Robert J. Hughes, Jack R. Kapoor
7th Edition
0357717945, 978-0357717943
