Question: Given the information below for a project being considered by a firm, calculate the projects 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 projects present value break-even point (also called the financial break-even point).
Initial investment: $900
Fixed Cost: $230 per year
Variable Cost: $4 per unit
Depreciation: $225 per year
Price: $10 per unit
Project Life: 4 years
Tax Rate: 35%
Discount Rate = 12%
.
| A. | 45 units per year | |
| B. | 67 units per year | |
| C. | 88 units per year | |
| D. | 94 units per year | |
| E. | 114 units per year |
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