Question: Given the following information: Price / Unit 2 2 5 VC / Unit 7 5 FC 5 0 0 , 0 0 0 Tax Rate

Given the following information:
Price/Unit 225
VC/Unit 75
FC 500,000
Tax Rate 21%
Rate 10%
Machine Cost 3,000,000
Life 4
Depreciation Straight Line
Calculate the equivalent annual cost of the machine. (Round to 2 decimals)
Calculate the financial break-even number of units for the project. (Round to 2 decimals)
Using the FBE units, calculate the annual operating cash flows for the project. (Round to 2 decimals)
Calculate the accounting break-even number of units for the project. (Round to 2 decimals)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!