An Investment Has an Initial Cash Outflow of $210,000 for Fixed

Multiple Choice

An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over 4 years,which is the life of the project.The sales price is set at $19.95 a unit,the annual fixed costs are $237,000,and the variable cost per unit is $8.87.The tax rate is 22 percent and the discount rate is 11 percent.At what sales quantity per year will the investment break even on a financial basis?

A) 29,787 units
B) 29,143 units
C) 27,886 units
D) 28,096 units
E) 30,308 units