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Homework answers / question archive / Rita's Flowers is considering a 3-year project with a discount rate of 12 percent, a tax rate of 34 percent, and an initial cost of $12,000 for fixed assets

Rita's Flowers is considering a 3-year project with a discount rate of 12 percent, a tax rate of 34 percent, and an initial cost of $12,000 for fixed assets

Finance

Rita's Flowers is considering a 3-year project with a discount rate of 12 percent, a tax rate of 34 percent, and an initial cost of $12,000 for fixed assets. The selling price is estimated at $22 a unit based on variable costs per unit of $6.20 and fixed costs of $2,280. Depreciation is straight-line to zero over 3 years. What is the accounting breakeven point?

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