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Calpine Company has the following information related to a new project: Initial investment: $980,000; Fixed costs:...

Calpine Company has the following information related to a new project: Initial investment: $980,000; Fixed costs: $230,000; Variable costs: $11.80 per unit; Selling price: $28.50 per unit; Discount rate: 14 percent; Project life: 8 years; Tax rate: 25 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?

28,194 units

27,615 units

26,534 units

25,418 units

29,093 units
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