Question: Consider a project with the following data: accounting break even quantity = 16,000 units; cash break even quantity = 12,500 units; life = three years;
Consider a project with the following data: accounting break even quantity = 16,000 units; cash break even quantity = 12,500 units; life = three years; fixed costs = $120,000; variable costs = $20 per unit; required return = 15%. Ignoring the effect of taxes, find the financial break-even quantity
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