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:

Bicarbonate

A negatively charged ion (HCO3-) that is a form of carbon dioxide in solution, playing a vital role in the buffering of blood pH.

Pancreas

The pancreas is an organ involved in digestion and blood sugar regulation, producing digestive enzymes and insulin, respectively.

Duodenum

The first section of the small intestine immediately beyond the stomach, where the majority of chemical digestion takes place.

Gallbladder

A small, pear-shaped organ located beneath the liver, which stores and concentrates bile, a digestive enzyme produced by the liver.