An investment has an initial cash outflow of $210,000 for fixed assets that will depreciate in a straight line to zero over four years, which is the life of the project. The selling price is set at $19.95 per unit, annual fixed costs are $237,000, and variable cost per unit is $8.87. The tax rate is 34% and the discount rate is 11%.

At what number of sales per year will the investment break even on a financial basis?

Answer rating: 100% (QA)

Initial Cash Outflow 210000 Useful Life 4 years Annual Depreci... View the full answer