Accounting break-even level of units sold

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Reference no: EM13769095

Given the following facts about a project, determine both the accounting break-even level of units sold and the NPV break-even level of units sold.

product price = $100/unit

variable costs = $40/unit

fixed costs = $200,000/year

initial cost = $1,000,000

salvage value of equipment = $0

project life = 10 years

tax rate = 35%

cost of capital = 12%

Reference no: EM13769095

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