A Project Has a fiVe-Year Life, a 13% Required Rate

Multiple Choice

A project has a five-year life, a 13% required rate of return, and an initial investment in fixed assets of $248,000. The fixed assets will be depreciated straight-line to zero over the life of the project
And have no salvage value. Annual fixed costs are estimated at $96,133 while variable costs are
Projected at $8.06 a unit. The company plans to sell the units for $12.13 each. What is the cash
Break-even quantity?

A) 7,925
B) 11,927
C) 23,620
D) 28,634
E) 35,807