What is the accounting break-even level for the project

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Reference no: EM13876091

You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone = $34.60 Variable costs per abalone = $5.70 Fixed costs per year = $371,000 Depreciation per year = $116,000 Tax rate = 34% The discount rate for the company is 13 percent, the initial investment in equipment is $696,000, and the project’s economic life is six years. Assume the equipment is depreciated on a straight-line basis over the project’s life.

What is the accounting break-even level for the project?

What is the financial break-even level for the project?

Reference no: EM13876091

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