Question: We are evaluating a project that costs $ 8 4 5 , 0 0 0 , has an eight - year life. Depreciation per year

We are evaluating a project that costs $845,000, has an eight-year life. Depreciation per year is
$105,625. Sales are projected at 51,000 units per year. Price per unit is $53, variable cost per unit
is $27, and fixed costs are $950,000 per year. The tax rate is 22 percent, and we require a return
of 10 percent on this project.
1. Calculate the projects break-even operating cash flow.
2. Calculate the projects break-even revenue.
3. Calculate the projects break-even per unit sale price.

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