Financial break-even level for the project

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Reference no: EM131013076

You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information:

Sales price par abalone = $80
Variable cost per aa one = $5.40
Fixed cost per year = $750,000
Deprecation per year = $51,429
Tax Rate = 35%

The discount rate for the company is 15 percent, the Initial investment in equipment is $360,000, and the projects economic lite is 7 years. Assume the equipment is depreciated on a straight-line basis over the projects life ($51,429 per year).

What is the Financial Break-Even level for the project? Do not use a comma in your numerical answer.

Reference no: EM131013076

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