Compute the economic break even

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The management Dior Corp. is planning to invest in a machine which has a four-year life. The initial investment of the project is $8,000, the annual addition to working capital is equal to $4,000. The fixed cost would be $4,000. The unit contribution margin is $15. The firm’s marginal tax rate is 35%. The present value of net non-recurring investments would be $18,928. FCFt is $5,971. Compute the economic break even. (Round your intermediate calculation to whole dollar amount and final answer to the nearest whole unit.)

Reference no: EM131347589

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