What is the cash break-even point

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Reference no: EM131958013

Question: A company is considering a 5-year project that opens a new product line and requires an initial outlay of $81,000. The assumed selling price is $98 per unit, and the variable cost is $58 per unit. Fixed costs not including depreciation are $18,000 per year. Assume depreciation is calculated using stright-line down to zero salvage value. If the required rate of return is 10% per year, what is the cash break-even point? (Answer to the nearest whole unit.)

Reference no: EM131958013

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