Question: A project's initial investment = $250,000; variable cost = $120; fixed cost = $65,000; price = $150; life = 5 years; required return = 10%.

A project's initial investment = $250,000; variable cost = $120; fixed cost = $65,000; price = $150; life = 5 years; required return = 10%. Straight line depreciation. Tax rate = 21%. What is the cash break-even point?

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