Te quantity where operating cash flow equals zero is


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A project has the following estimated data: price = $94 per unit; variable costs = $38.54 per unit; fixed costs = $7,200; required return = 10 percent; initial investment = $8,000; life = five years. Ignoring the effect of taxes:

1. The quantity where operating cash flow equals zero is _____ units. (Round your answer to 2 decimal places. (e.g., 32.16))

2. The quantity where Net Income would be zero is _____ units. (Round your answer to 2 decimal places. (e.g., 32.16))

3. The financial break-even quantity is _____ units. (Round your answer to 2 decimal places. (e.g., 32.16))

4. The degree of operating leverage at the financial break-even level of output is _____. (Round your answer to 3 decimal places. (e.g., 32.161))

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Financial Management: Te quantity where operating cash flow equals zero is
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