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A company is considering a 5-year project that opens a new product line and requires an initial outlay of $76,000. The a
Posted: Wed Mar 30, 2022 3:43 pm
by answerhappygod
- A Company Is Considering A 5 Year Project That Opens A New Product Line And Requires An Initial Outlay Of 76 000 The A 1 (31.93 KiB) Viewed 26 times
A
company is considering a 5-year project that opens a new product line and requires an initial outlay of $76,000. The assumed selling price is $93 per unit, and the variable cost is $51 per unit. Fixed costs not including depreciation are $20,000 per year. Assume depreciation is calculated using stright-line down to zero salvage value. If the required rate of return is 11% per year, what is the financial break-even point? (Answer to the nearest whole unit.)