Question: Consider a project with the following data: Price R67 Initial Investment R12 000 Useful life 3 yrs Fixed costs R6 000 Variable costs per unit

Consider a project with the following data:

Price

R67

Initial Investment

R12 000

Useful life

3 yrs

Fixed costs

R6 000

Variable costs per unit

R37/unit

Required return

15%

PVIFA (15%, 3yrs)

2.8550

Ignore the effect of taxes.


REQUIRED:
What is the financial breakeven quantity?

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