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

Multiple Choice

Calculate the economic break-even level of sales for a project requiring an investment of $3 million and providing annual cash flows equal to 15% of sales less $250,000. None of the initial investment is recoverable. Assume the project will generate these cash flows for 10 years and the discount rate is 10%.

A) $3,254,890
B) $3,504,890
C) $4,921,575
D) $1,686,667