Question: A project has the following estimated data: price = $800 per unit variable costs=$650 per unit: fixed costs =$900,000 required return = 8%initial investment =

A project has the following estimated data: price = $800 per unit variable costs=\$650 per unit: fixed costs =\$900,000 required return = 8%initial investment = $5,000,000: salvage value=\$50,000 ; life = 16 years. What is the financial break-even quantity? [2 marks) What is the operating cash flow at the financial break-even quantity? [2 marks] What is the degree of operating leverage at the financial break-even quantity2 marks]

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