Answered You can hire a professional tutor to get the answer.
You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per...
You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information:
Sales price per abalone = $35.70
Variable costs per abalone = $6.80
Fixed costs per year = $382,000
Depreciation per year = $127,000
Tax rate = 40%
The discount rate for the company is 14 percent, the initial investment in equipment is $889,000, and the project's economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project's life.
The accounting break even is 17,612 units
What is the financial break-even level for the project?
