Question: Given the information below for a project being considered by a firm, calculate the project's present value break-even point (also called the financial break-even point).
Given the information below for a project being considered by a firm, calculate the project's present value break-even point (also called the financial break-even point).
.
Initial Investment: $800
Fixed Cost: $230 per year
Variable Cost: $4 per unit
Depreciation: $225 per year
Price: $10 per unit
Discount Rate: 12%
Project Life: 4 years
Tax Rate: 21%
.
| A. | 114 units per year | |
| B. | 94 units per year | |
| C. | 84 units per year | |
| D. | 45 units per year | |
| E. | 142 units per year |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
