A new product requires an initial investment of $3.5 million and will be depreciated to an expected salvage of zero over 7 years.

A new product requires an initial investment of $3.5 million and will be depreciated to an expected salvage of zero over 7 years. The price of the new product is expected to be $35,000, and the variable cost per unit is $27,000. The fixed cost is $1.5 million. Assume that discount rate is 15%. Calculate accounting, cash, and financial break-evens.

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jeff jeffy answered 2 years ago

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