Arvin's is analyzing a project with an initial cost of $212,000 that would be depreciated straight-line to zero over the project's 3-year life. Estimates include fixed costs of $48,280, variable costs per unit of $13.12, and a selling price of $26.50 per unit. The discount rate is set at 16 percent with a tax rate of 35 percent. What is the financial break-even point? Multiple Choice O O O 11,199 units 11,618 units 10,117 units 10,749 units 13,067 units

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Arvin's is analyzing a project with an initial cost of $212,000 that would be depreciated straight-line to zero over the project's 3-year life. Estimates include fixed costs of $48,280, variable
costs per unit of $13.12, and a selling price of $26.50 per unit. The discount rate is set at 16 percent with a tax rate of 35 percent. What is the financial break-even point?
Multiple Choice
11,199 units
11,618 units
10,117 units
10,749 units
13,067 units
Transcribed Image Text:14 02:39:21 Arvin's is analyzing a project with an initial cost of $212,000 that would be depreciated straight-line to zero over the project's 3-year life. Estimates include fixed costs of $48,280, variable costs per unit of $13.12, and a selling price of $26.50 per unit. The discount rate is set at 16 percent with a tax rate of 35 percent. What is the financial break-even point? Multiple Choice 11,199 units 11,618 units 10,117 units 10,749 units 13,067 units
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