A project's initial investment is $220,000;variable cost per unit is $75; annual fixed cost is $32,000; price per unit is $95; 5 years of economic life; required return is 10%; straight line depreciation; before-tax salvage value in terminal year is $25,000; initial net working capital investment is $20,000, and tax rate is 21%. What is the financial break-even point?

Answer rating: 100% (QA)

To calculate the financial breakeven point we need to determine the number of units that need to be ... View the full answer