You are considering investing in a company that cultivatesabalone for sale to local restaurants. Use the followinginformation: Sales price per abalone = $44.10 Variable costs perabalone = $11.00 Fixed costs per year = $478,000 Depreciation peryear = $117,000 Tax rate = 21% The discount rate for the company is13 percent, the initial investment in equipment is $936,000, andthe project’s economic life is 8 years. Assume the equipment isdepreciated on a straight-line basis over the project’s life andhas no salvage value. a. What is the accounting break-even levelfor the project? (Do not round intermediate calculations and roundyour answer to 2 decimal places, e.g., 32.16.) b. What is thefinancial break-even level for the project? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)
