Calculate the cash-flow break even quantity

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Consider the following production-oriented project. The units produced will sell for $28/unit and can be produced at a variable cost of $20/unit. Fixed costs are $80,000. The purchase price for the project is $200,000, depreciable down to zero over a four-year life. The project has no salvage value. Ignore taxes, but use a 10% required return when evaluating this project.

A. Calculate the cash-flow break even quantity

B. Calculate the financial Break-even quantity

Reference no: EM131072656

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