You are considering a new product launch. the project will, Ask an Expert

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problem: You are considering a new product launch. The project will cost dollar 870,000, have a four year life, and have no salvage value; depreciation is straight line to zero. Sales & projected at 210 units per year; value per unit will be dollar 20,000. Variable cost per unit will be dollar 16,000, & fixed costs will be dollar 348,000 per year. The required return on the project is 15%, & the relevant tax rate is 36%.

The cash breakeven level of output for this project [ignore all taxes] is _______ units. [Give your answers to two decimal places]

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Category:- Basic Finance
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