Find the breakeven (Ai*) for the following projects (Incremental cash flow), Using interpolation. Note: Do not write the percentage sign (%) in the blank. Just write a number with two digits after decimal point like 18.32. А First cost, $ -10,000 -60,000 Annual operationg cost, $ -78,000 -65,000 Salvage value, $ 6.000 11,000 Life, year

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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Chapter10: Capital Budgeting: Decision Criteria And Real Option
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Find the breakeven (Ai*) for the following projects (Incremental cash flow), Using interpolation.
Note: Do not write the percentage sign (%) in the blank. Just write a number with two digits after decimal point like 18.32.
First cost, $
-10,000
-60,000
Annual operationg cost, $
-78,000
-65,000
Salvage value, $
Life, year
6,000
11,000
9.
Answer!
AICVT A/TNATV
1C
ASTIV TV
Transcribed Image Text:Find the breakeven (Ai*) for the following projects (Incremental cash flow), Using interpolation. Note: Do not write the percentage sign (%) in the blank. Just write a number with two digits after decimal point like 18.32. First cost, $ -10,000 -60,000 Annual operationg cost, $ -78,000 -65,000 Salvage value, $ Life, year 6,000 11,000 9. Answer! AICVT A/TNATV 1C ASTIV TV
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