What is the financial or present value break-even point?, Ask an Expert

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What is the financial (or present value) break-even point? Price = $100 per unit; variable cost = $24 per unit, fixed cost = $40,000 per year; depreciation = $10,000 per year. Assume a discount rate of 10%, project initial outlay of $100,000, project life of 10 years, and ignore taxes.

a. 527 units

b. 624 units

c. 658 units

d. 741 units

e. 1,130 units

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M941270

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