Question: please help determine how to find the financial break even level You are considering investing in a company that cultivates abalone for sale to local
You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: $44.60 Sales price per abalone Variable costs per abalone Fixed costs per year Depreciation per year Tax rate = $11.25 $498,000 = $102,000 = 21% The discount rate for the company is 13 percent, the initial investment in equipment is $918,000, and the project's economic life is 9 years. Assume the equipment is depreciated on a straight-line basis over the project's life and has no salvage value. a. What is the accounting break-even level for the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the financial break-even level for the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is not complete. a. 17.991 00 units Accounting break-even level Financial break-even level b. units
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
