You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information:
- Sales price par abalone = $80
- Variable cost per aa one = $5.40
- Fixed cost per year = $750,000
- Deprecation per year = $51,429
- Tax Rate = 35%
The discount rate for the company is 15 percent, the Initial investment in equipment is $360,000, and the projects economic lite is 7 years. Assume the equipment is depreciated on a straight-line basis over the projects life ($51,429 per year).
What is the Financial Break-Even level for the project? Do not use a comma in your numerical answer.