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His problem concerns the effect of taxes on the various break-even measures. consider a project to supply detroit with 20,000 tons of machine screws annually for automobile production. you will need a

His problem concerns the effect of taxes on the various break-even measures. consider a project to supply detroit with 20,000 tons of machine screws annually for automobile production. you will need an initial $3,400,000 investment in threading equipment to get the project started; the project will last for four years. the accounting department estimates that annual fixed costs will be $800,000 and that variable costs should be $180 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the four-year project life. it also estimates a salvage value of $620,000 after dismantling costs. the marketing department estimates that the automakers will let the contract at a selling price of $300 per ton. the engineering department estimates you will need an initial net working capital investment of $340,000. you require a return of 11 percent and face a marginal tax rate of 38 percent on this project. calculate the accounting, cash, and financial break-even quantities. (do not round intermediate calculations and round your final answers to the nearest whole number,

e.g., 32.) cash break-even accounting break-even financial break-even

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