A project has a contribution margin of $15, projected fixed costs of $120,000, variable costs per unit of $12, annual depreciation of $61,000, and a projected present value break-even point of 13,601.20 units. The tax rate is 21 percent, the discount rate is 12 percent, and the project life is 3 years. What is the equivalent annual cost? Multiple Choice $81,110 $76,667 $76,192 $72.549

A project has a contribution margin of $15, projected fixed costs of $120,000, variable costs per unit of $12, annual depreciation of $61,000, and a projected present value break-even point of 13,601.20 units. The tax rate is 21 percent, the discount rate is 12 percent, and the project life is 3 years. What is the equivalent annual cost? Multiple Choice $81,110 $76,667 $76,192 $72.549

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Description: Please do not give solution in image format thanku A project has a contribution margin of $15, projected fixed costs of $120,000, variable costs per unit of $12, annual depreciation of $61,000, and aprojected present value break-even point of 13,601.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 21P

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