A Project Requires an Initial Fixed Asset Investment of $148,000,has

question 42

Multiple Choice

A project requires an initial fixed asset investment of $148,000,has annual fixed costs of $39,800,a contribution margin of $14.62,a tax rate of 21 percent,a discount rate of 15 percent,and straight-line depreciation over the project's 3-year life.The assets will be worthless at the end of the project.What is the present value break-even point in units per year?

• A)6,086
• B)7,613
• C)7,504
• D)7,438
• E)7,911

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Definitions:

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action, essentially what is given up when choosing one option over another.

Key Performance Indicator

A quantifiable metric that shows how successfully a business is meeting its primary goals.

SMART Objectives

Specific, Measurable, Achievable, Relevant, and Time-bound goals that provide clear direction and criteria for success.

Tracking

The process of monitoring and recording the behavior or movements of objects or people, often used in the context of data analysis and optimization.