Business, 18.04.2021 05:00 unknown6669

You are considering a new product launch. The project will cost $1,950,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 180 units per year; price per unit will be $24,000, variable cost per unit will be $15,000, and fixed costs will be $540,000 per year. The required return on the project is 10 percent, and the relevant tax rate is 34 percent. 1. What is the cash break-even level of output for this project (ignoring taxes)? (Round your answer to 2 decimal places. (e. g., 32.16))
Cash break-even
2. What is the accounting break-even level of output for this project? (Round your answer to 2 decimal places. (e. g., 32.16))
Accounting break-even

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You are considering a new product launch. The project will cost $1,950,000, have a four-year life, a...

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