A project requires an investment of $4,051,000 and fixed assets that will be depreciated on a straight line basis to zero over five years at which point the assets will be worthless. The forecast sales price is $71,600 per unit with a variable cost of $9,200 per unit fixed cost are expected to be $419,100 per year if the discount rate is 25% find the financial break even point.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A project requires an investment of $4,051,000 and fixed assets that will be depreciated on a straight line basis to zero over five years at which point the assets will be worthless. The forecast sales price is $71,600 per unit with a variable cost of $9,200 per unit fixed cost are expected to be $419,100 per year if the discount rate is 25% find the financial break even point.

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