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A 5-year project will require an initial investment of $32,000,000 to create a new product. What is the financial breakeven point?

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Final answer:

The financial breakeven point for this 5-year project requires selling 1,280,000 units.

Step-by-step explanation:

In order to find the financial breakeven point, we need to determine the quantity of units that need to be sold in order to cover the initial investment. Let's assume that each unit is sold for $25. To cover the initial investment of $32,000,000, we divide the investment by the selling price per unit:

Breakeven point = Initial investment / Selling price per unit
= $32,000,000 / $25
= 1,280,000 units

Therefore, the financial breakeven point for this 5-year project is 1,280,000 units.

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