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Lexington, Inc. has the following information related to a new project: Initial investment: $2,630,000; Fixed costs:...

Lexington, Inc. has the following information related to a new project: Initial investment: $2,630,000; Fixed costs: $499,000; Variable costs: $16.28 per unit; Selling price: $45.30 per unit; Discount rate: 14 percent; Project life: 8 years; Tax rate: 25 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?

41,507 units

40,122 units

39,468 units

38,211 units

37,654 units
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