The investment break even on financial basis

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Reference no: EM131539846

An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over 4 years, which is the life of the project. The sales price is set at $19.95 a unit, the annual fixed costs of $237,000, and the variable cost per unit is $8.87. The tax rate is 34 percent and the discount rate is 11 percent. At what sales quantity per year will the investment break even on a financial basis? a. 29.787 units b. 29,143 units c. 28,205 units d. 28,096 units e. 30,308 units.

Reference no: EM131539846

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