Question: 5) (25 points) The following data is given for a company: Sales price per unit $2.xx (xx is the last two digits of your student
5) (25 points) The following data is given for a company: Sales price per unit $2.xx (xx is the last two digits of your student number) Variable cost per unit $1 Fixed cost $340,000 Tax Rate 40% The cost of capital for the company is 15%, the initial investment in equipment is $140,000 and the project's economic life is seven years. The equipment is depreciated on a straight- line basis to a salvage value of zero over the project's life. What is the financial (NPV) break- even level of sales? Show your work
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