What is the financial break-even level for the project

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Reference no: EM131822132

You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone = $35.50 Variable costs per abalone = $6.60 Fixed costs per year = $380,000 Depreciation per year = $125,000 Tax rate = 34% The discount rate for the company is 13 percent, the initial investment in equipment is $750,000, and the project’s economic life is six years. Assume the equipment is depreciated on a straight-line basis over the project’s life. a. What is the accounting break-even level for the project? (Do not round intermediate calculations and round your answer to the nearest whole number (e.g., 32).) Accounting break-even level units b. What is the financial break-even level for the project? (Do not round intermediate calculations and round your answer to the nearest whole number (e.g., 32).) Financial break-even level units

Reference no: EM131822132

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