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A Project Has a Discounted Payback Period Just Equal to the Project's

Question 215

Multiple Choice

A project has a discounted payback period just equal to the project's life. The projections include a sales price of $21.90, a variable cost per unit of $14.80, and fixed costs of $27,200. The operating cash flow is $14,260. What is the break-even quantity?


A) 2,008.45 units
B) 3,830.99 units
C) 4,316.89 units
D) 5,839.44 units.
E) 6,240.01 units.

Correct Answer:

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