Financial Break-Even Analysis You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information:
Sales price per abalone | = $80 |
Variable costs per abalone | = $5.40 |
Fixed costs per year | = $750,000 |
Depreciation per year | = $51,429 |
Tax rate | = 35% |
The discount rate for the company is 15 percent, the initial investment in equipment is $360,000, and the project’s economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project’s life.
a.What is the accounting break-even level for the project?
b.What is the financial break-even level for the project?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.