Question: Consider a project with a 5 - year life. The initial cost to set up the project is $ 4 5 0 , 0 0

Consider a project with a 5-year life. The initial cost to set up the project is $450,000. This amount is to be linearly depreciated to zero over the life of the project. The firm expects to be able to sell the equipment for $90,000 after 5 years.
The price per unit is $310, variable costs are $248 per unit and fixed costs are $45,000 per year. The project has a required return of 16% and a tax rate of 28%.How many units must be sold per year for the project to achieve financial break-even?

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