Consider a project with the following data: Annual fixed costs = $225,000. Price is $45/unit and variable costs are $21/unit. The project will last 5 years and is depreciated on a straight-line basis with no residual value. The accounting breakeven quantity is 15,400 units per year. There are no taxes and the required return on the project is 15% per year.

What is the initial cost of the project?

Initial cost ($) =

What is the financial break even quantity per year?

Financial breakeven quantity =

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