What is the financial break-even level for the project

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Question: Financial Break-even Analysis: You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information

Sales price per abalone = $35

Variable costs per abalone = $6.10

Fixed costs per year = $375,000

Depreciation per year = $120,000

Tax Rate = $35%

The discount rate for the company is 15%, the initial investment in equipment is $840,000, and the project's economic life is 7 years. Assume the equipment is depreciated on a straight-line basis over the project's life.

What is the accounting break-even level for the project?

What is the financial break-even level for the project?

Reference no: EM131974318

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