Straight-line depreciation over the project life

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Reference no: EM131854341

Steve H. has compiled this information related to a new project: Initial investment: $700,000; Fixed costs: $400,000; Variable costs: $12.50 per unit; Selling price: $35.00 per unit; Discount rate: 10 percent; Project life: 5 years; Tax rate: 34 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?

Reference no: EM131854341

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