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A new product requires an initial investment of $5 million and will be depreciated to an...

A new product requires an initial investment of $5 million and will be depreciated to an expected salvage of zero over 5 years. The price of the new product is expected to be $25,000, and the variable cost per unit is $15,000. The fixed cost is $1 million. When the required return is 15.24%, what is the financial break-even point in units?

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

TAX IS NOT GIVEN, ASSUMED = 0%

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