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You are in charge of a project that has a degree of operating leverage of 1.16. What will happen to the operating cash flows if

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You are in charge of a project that has a degree of operating leverage of 1.16. What will happen to the operating cash flows if the number of units you sell increases by 3.94 percent? 2.94 percent decrease 3.40 percent increase 4.57 percent increase 3.40 percent increase 2.94 percent increase Question 40 2.5pts A 5-year project will require an initial investment of $3,500,000 to create a new product. The salvage value is zero, and there will be no impact on Net Working Capital. The firm's expects to sell the new products for $36,000 per unit, and incur variable costs of $18,000 per unit. Annual fixed costs are expected to be $455,000. The firm uses a 20% discount rate. What is the financial break-even point? (Round your answer to the nearest whole unit. For example, if your answer is 1,234.56789, enter 1235. Do not worry if Canvas adds commas.)

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