1. A company plans to purchase a machine at a cost of $200,000. The machine will produce 1,000 units of a product each year. In addition, the machine will operate for 10 years, after which, it will be salvaged for $5. The profits derived from each unit produced is $P. Assume an interest rate of 5% and ignore tax. a. Determine the present value of purchasing this machine in terms of P and S. b. Is the present value of purchasing this machine more sensitive to P or S? Explain. c. Suppose $S = $10,000. Determine the breakeven unit profit P