Chapter 4: Net Present Value - Finance Department

The present value break-even point is 297,657 abalones. When calculating the present value break-even point, express the initial investment of $200,000 as an equivalent annual cost (EAC). Divide the initial investment by the five-year annuity factor, discounted at 12 percent. EAC = Initial Investment / ATr = $200,000 / A50.12 = $55,481.95 ................
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