Question

Calculate the accounting as well as the finance break-even point for the following project: initial investment of $500,000, revenues of $700,000, $100,000 fixed costs, $75,000 depreciation, 60% variable costs, and a 35% tax rate. What happens to the break-even if a trade-off is made that increases fixed costs by $30,000 and decreases variable costs to 55% of sales? Assuming the project is going to last 6 years, and opportunity cost of capital is 9%.



$1.99
Sales0
Views173
Comments0
  • CreatedAugust 05, 2013
  • Files Included
Post your question
5000