Question: A projects initial investment = $360,000; variable cost = $140; fixed cost = $75,000; price = $180; life = 6 years; required return = 10%;
A projects initial investment = $360,000; variable cost = $140; fixed cost = $75,000; price = $180; life = 6 years; required return = 10%; Straight line depreciation. Before-tax salvage value = $35,000. Tax rate = 21%. What is the financial break-even point?
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