Question: Consider an investment project whose initial cost which is also equal to its capital cost is $30 million. The life of the project is 15

 Consider an investment project whose initial cost which is also equal

Consider an investment project whose initial cost which is also equal to its capital cost is $30 million. The life of the project is 15 years and it is estimated to have a zero salvage value. n on this asset will be claimed on a declining balance basis at the d rate of 20%. The first year one-half rule will apply. The product the project will produce will be sold at $10,000 per unit and variable costs per unit is $6,000. million, corporate tax rate of 30% and costs of capital at 10% per annum. Assume annual fixed cost of the project of $4 Find the financial break-even level of project's output. If the project is 2,240 units, is the project acceptable? the forecasted incremental output of

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