What is cash-accounting and financial break-even quantity

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A project is financed by Equity and Debt. The cost of cost of equity is 10%.; the cost of equity is 10%. The market value of the debt is $250,000 and there are 250,000 shares trading at $1 each. Assume that there are no taxes. The project is depreciated straight-line to a book value of zero over the life of the project. The equipment will have no salvage value. Annual fixed costs are $50,000. The contribution margin is $12.5. The project has a 5-year life. What is the cash, accounting, and financial break-even quantity?

Reference no: EM131554762

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