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Suppose you are the Financial Manager of Naveen Flour Mills. Based on Naveen’s previous experience, the project staff of Naveen has developed has furnished the following data: Cost of Capital for Naveen= 10% Year 0 ( Rs in Thousand) Year 1-5 ( Rs in Thousand) Investment (20,000) Sales 18000 Variable Cost ( 66.67% of Sales) 12,000 Fixed Costs 1,000 Depreciation 2,000 Pre-Tax Profit 3,000 Taxes @ 50% 1,500 Profit after taxes 1,500 Cash flow from Operations 3,500 Calculate the Financial Break Even point of the above project?

Financial Management, Finance

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