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In: Accounting

Construction project requires an intial investment of $900,000, has a nine-year life, and salvage value is...

Construction project requires an intial investment of $900,000, has a nine-year life, and salvage value is Zero. Sales are projected at 75,000 units per year. Price per unit is $47, variable cost per unit is $34, and fixed costs are $825,000 per year. The tax rate is 35%, and discount rate is 15%. Using straight-line depreciation method:
1. Calculate the accounting break-even point in number of units, what is the degree of operating leverage at the accounting break-even point
2. Calculate the OCF, NPV
3. Calculate the financial break-even point in number of units

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ekkarill92 answered 2 hours ago
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