The Mini-Max Company has the following information on their new prospective project. Initial investment is $500 Fixed

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The Mini-Max Company has the following information on their new prospective project.

Initial investment is $500

Fixed costs are $ 200/year.

Variable costs: $ 3/unit.

Depreciation (CCA): $150/year.

Price: $ 8/unit.

Discount rate: 10%.

Project life: 2 years.

Tax rate: 40%.

If the initial investment is made in period 0 and the first operating cash flow is in period 1, what is the number of units sold to attain present value breakeven?

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Managerial Economics A Problem Solving Approach

ISBN: 978-1133951483

3rd edition

Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War

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Posted Date: Dec 21, 2023 11:43 PM

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The Mini-Max Company has the following information on their new prospective project. Initial investment is $500 Fixed

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StepbyStep Calculation for MiniMax Company Project BreakEven Units 1 Annual AfterTax Operating ... View the full answer

Managerial Economics A Problem Solving Approach

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