Question: Consider a project with the following data: accounting break-even quantity = 31,696 units; cash break-even quantity = 15,861 units; life = 9 years; fixed costs
Consider a project with the following data: accounting break-even quantity = 31,696 units; cash break-even quantity = 15,861 units; life = 9 years; fixed costs = $209,156; variable costs = $22 per unit; required return = 13 percent; depreciation = straight line. Ignoring the effect of taxes, what is the financial break-even quantity?
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