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An investment has an initial cash outflow of $210000 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

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 an accounting basis? Please show your work.

 

Apr 02 2020 View more View Less

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