Given the Following Information,calculate the Present Value Break-Even Point

question 59

Multiple Choice

Given the following information,calculate the present value break-even point.
Initial investment: $2,000
Fixed costs: $2,000 per year
Variable costs: $6 per unit
Depreciation: $250 per year
Price: $20 per unit
Discount rate: 10%
Project life: 4 years
Tax rate: 34%

• A) 100 units per year
• B) 143 units per year
• C) 202 units per year
• D) 286 units per year
• E) None of these.

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Definitions:

Finger-like Projections

Extensions found on the surface of certain cells or within bodily organs that increase surface area for absorption or sensory perception.

Mucosa

The moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and stomach.

Villi

Small fingerlike projections that extend into the lumen of the small intestine, increasing its surface area for absorption.

Medial Margin

The edge or boundary closest to the midline of the body or a body part.