A Project Has a Five-Year Life, a 13% Required Rate

question 190

Multiple Choice

A project has a five-year life, a 13% required rate of return, and an initial investment in fixed assets of $248,000. The fixed assets will be depreciated straight-line to zero over the life of the project and have no salvage value. Annual fixed costs are estimated at $96,133 while variable costs are projected at $8.06 a unit. The company plans to sell the units for $12.13 each. What is the cash break-even quantity?

• A) 7,925
• B) 11,927
• C) 23,620
• D) 28,634
• E) 35,807

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A treatment method involving psychological techniques, used to assist someone to overcome psychological problems or achieve personal growth.

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