What is the equivalent annual cost

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Question: A 3-year project has a contribution margin of $15, projected fixed costs of $120,000, a projected variable cost per unit of $12, straight-line depreciation for 3 years of $61,000 and a projected present value break-even point of $13,601.20 units. The tax rate is 34 percent and the discount rate is 12 percent. What is the equivalent annual cost?

Reference no: EM131926161

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