A Project Has a Four-Year Life and an Initial Cost

Multiple Choice

A project has a four-year life and an initial cost of $84,000. This project has been assigned a 15% required rate of return. The selling price per unit has been set at $33.00. Annual fixed costs are $67,500 with variable costs of $28.90 per unit. What is the financial break-even quantity if taxes are ignored?

A) 16,463
B) 17,897
C) 18,419
D) 23,640
E) 29,422