Considering new project that requires initial investment

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Hartford Industries is considering a new project that requires an initial investment of $182,000 for fixed assets, which will be depreciated straight-line to zero over the project's 5-year life. The project is expected to have fixed costs of $42,000 a year. The variable cost is $20 per unit and the expected sales price is $45.50 per unit. The tax rate is 34 percent and the discount rate is 12 percent. What is the financial break-even point?

Reference no: EM131343326

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