What is the projects financial break even point in


A company invested $400,000 to develop a new computer. The variable costs were $65 per unit and fixed costs were $175,000. It is expected to take four years to become marketable. The computers will sell for $100. The project's cost of capital is 12.5%.

a) What is the project's financial break even point in units?
b) The computers have hit the market and there is a 35% increase in sales. What is the percent change in OCF after the first year of sales?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the projects financial break even point in
Reference No:- TGS0806953

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)