Question: Given the information below for a new project, calculate the minimum number of units to be sold for the financial break-even point to be achieved.
Given the information below for a new project, calculate the minimum number of units to be sold for the financial break-even point to be achieved.
Initial investment: $500K
Project life: 2 years
NOWC: $0
Fixed costs: $100K per year
Depreciation: $50K per year
Variable costs: $5 per unit
Price: $10 per unit
Discount rate: 10%
Tax rate: 40%
Salvage value: $0
4,571 units
64,571 units
66,032 units
) 126,032 units
none of the above
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