A Project Has the Following Estimated Data: Price = $150

question 179

Multiple Choice

A project has the following estimated data: price = $150 per unit; variable costs = $88 per unit; fixed costs = $250,000; required return = 11%; initial investment = $200,000; $50,000 salvage value; life = ten years. What is the cash break-even quantity?

• A) 4,032 units.
• B) 4,274 units.
• C) 4,532 units.
• D) 4,784 units.
• E) 4,955 units.

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Definitions:

Parent Company

A corporation that owns controlling interest in one or more other companies, referred to as subsidiaries.

Total NCI

Refers to the Total Non-Controlling Interest in a company, representing the equity in a subsidiary not attributable directly or indirectly to the parent company.

Parent Ltd

A corporation that holds a controlling interest in one or more other companies, also referred to as subsidiaries.

Indirect NCI

Non-controlling interest (NCI) that is not directly held by another entity but is held through one or more intermediaries.