What is the cash break-even port

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1. A company is considering a 5-year project that opens a new product line and requires an initial outlay of $80,000 The assumed selling price is $95 per unit, and the variable cost is $55 per unit Fixed costs not including depreciation are $16,000 per year Assume depreciation is calculated using straight-line down to zero salvage value If required rate of return is 14% per year, what is the cash break-even port? (Answer to the nearest whole unit)

2. A company is considering a 5-year project that opens a new product line and requires an initial outlay of $82000. The assumed selling price is $96 per unit, and the variable cost is $70 per unit. Fixed costs not including depreciation are $16,000 per year. Assume depreciation is calculated using straight-line down to zero salvage value. If the required rate of return is 12% per year, what is the financial breakeven port? (Answer to the nearest whole unit)

Reference no: EM131617074

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