Determining the financial break-even point


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

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determining the financial break-even point
Reference No:- TGS041270

Expected delivery within 24 Hours