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  3. question 3: (10 pts) a five-year proposed project

Question 3: (10 pts) A five-year proposed project has these following estimates: Price = $54...

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Accounting

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Question 3: (10 pts) A five-year proposed project has these following estimates: Price = $54 per unit Variable cost = $22 per unit Fixed cost = $9,500 per year Initial fixed asset investment = $55,000. Depreciated straight-line, salvage value = $0 No NWC requirement Required rate of return = 18% Ignore taxes, calculate (a) (d) and answer (e) (a) Accounting break-even (round the result to the closest integer) (b) Cash break-even (round the result to the closest integer) (c) Financial break-even (round the result to the closest integer) (d) DOL in each break-even found in (a), (b) and (c) (e) Between accounting break-even and cash break-even, which one is easier to obtain? Why

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