4. Given the following information, what is the financial break-even point? Initial investment = $180,000; variable...
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4. Given the following information, what is the financial break-even point? Initial investment = $180,000; variable cost = $85; fixed cost = $68,000; price = $125; life = 6 years; required return = 12%; SL depreciation; before-tax salvage value of assets = $21,000; initial net working capital investment = $17,000, and tax rate is 21%. 4. Given the following information, what is the financial break-even point? Initial investment = $180,000; variable cost = $85; fixed cost = $68,000; price = $125; life = 6 years; required return = 12%; SL depreciation; before-tax salvage value of assets = $21,000; initial net working capital investment = $17,000, and tax rate is 21%.
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First we need to calculate the annual fixed costs Annual fixed costs Fixed cost life of the project ... View the full answer
Related Book For
Modern Portfolio Theory and Investment Analysis
ISBN: 978-1118469941
9th edition
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
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