1. Given the following information, what is financial break-even point? Initial investment = $300,000; variable the return = $80; total fixed cost = $80,000; price = $100: life = 6 years; required return = 10%; SL depreciation: before-tax salvage value of assets = $25,000, and tax rate is 25%.
2. Given the following information, what is the financial break-even point? Initial investment = $300,000; variable cost = $70; fixed cost = $50,000; price = $100: life = 5 years; required return = 10%, SL depreciation; before-tax salvage value of assets = $25,000; initial net working capital investment = $10,000, and tax rate is 15%.