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Question: a. A project has an initial investment of $3.5 million, which will be straight-line depreciated to zero over five years (which is the life of the project). Each year there are $450,000 in fixed costs. The price per unit is $75 of which $35 are variable costs. The appropriate discount rate for this project is 17.3%, and the tax rate is 34%.

b. Find the financial breakeven point in terms of revenue and number of units sold per period.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92761951

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