6. Tucker's Trucking is considering a project with a discounted payback period just equal to the...
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6. Tucker's Trucking 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 $18.50, 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.)? A. 631 units B. 1,211 units C. 1,641 units D. 2,301 units E. 2,651 units 6. Tucker's Trucking 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 $18.50, 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.)? A. 631 units B. 1,211 units C. 1,641 units D. 2,301 units E. 2,651 units
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Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
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