Question: Rio Brands is considering a project with a discounted payback period just equal to the project's life. The projections include a sales price of $38,
Rio Brands is considering a project with a discounted payback period just equal to the project's life. The projections include a sales price of $38, variable cost per unit of $17, and fixed costs of $32,000. The operating cash flow is $19,700. What is the break-even quantity (Hint: the discounted payback period equal to project's life indicates that the project has 0 NPV. Assume 0% tax and no depreciation.)?
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