Calculate the Economic Break-Even Level of Sales for a Project

question 53

Multiple Choice

Calculate the economic break-even level of sales for a project requiring an investment of $3,000,000 and providing as cash flows .15 * sales less $250,000.Assume the project will generate these cash flows for 10 years and that the discount rate is 10%.

• A) $3,254,890
• B) $3,504,890
• C) $4,921,549
• D) $19,686,667

---

Definitions:

Projection

A defense mechanism that involves attributing a disturbing impulse to someone else.

Impulses

Impulses are sudden, involuntary urges to act or respond to a situation without conscious thought.

Latency Stage

A phase in Freudian psychosexual development occurring roughly between the ages of six and puberty, during which sexual urges and activities are less pronounced.

Genitals

The external and internal organs of the reproductive system, playing a key role in sexual reproduction and pleasure.