The mini-max company has a prospective 5-year project with an initial cost of $318,900, annual fixed costs of $45,200, variable costs per unit of $16.78, and a sales price of $29.95. the discount rate is 13 percent and the tax rate is 24 percent. the firm uses straight-line depreciation over a project's life for all fixed assets. what is the accounting break-even point in units per year?

a. 7,850 units
b. 8,275 units
c. 10,315 units
d. 11,304 units
e. 11,429 units

The market for corn in country a is highly competitive. at the current market price of $5/bushel there is a shortage of 100,000 bushels of corn in this country. media reports claim that the price of corn will rise drastically in the near future. according to these reports, the neighboring country b had witnessed a similar situation recently. at the same price, the shortage in country b was also 100,000 bushels and eventually the equilibrium price in b went up to $10/bushel. both countries are known to have equal number of corn producers and the market supply of corn is identical at all prices. this, combined with the fact that consumers in the two countries also have similar tastes and preferences, led the media to conclude that the price of corn in country a would soon be as high as $10/bushel. the new equilibrium price turns out to be below $10/bushel, what inferences can be drawn?

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.

Arecession is defined as a period in which