Question: Question 2 (6 points) A project has the following estimated data: price = $800 per unit; variable costs = $650 per unit; fixed costs =

Question 2 (6 points) A project has the following estimated data: price = $800 per unit; variable costs = $650 per unit; fixed costs = $900,000; required return = 8%; initial investment = $5,000,000; salvage value = $500,000; life = 12 years. 1. What is the financial break-even quantity? [2 marks] ii. What is the operating cash flow at the financial break-even quantity? [2 marks] iii. What is the degree of operating leverage at the financial break-even quantity? [2 marks]

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