1. Equipment costs $77,751 Installation costs $ 9,388 Tax rate 31% Change in operating revenues $39,295/year for five years Sold in year six $ 4,640 MACRS 3-year class depreciation (33%, 45%, 15%, 7%) Calculate the incremental operating cash inflow in year one. (Round answer to nearest dollar)

2. If sales = $953,662 fixed operating costs = 546,166 variable operating costs = 12,697 interest expense = 11,229 net income = 24,789 Calculate DCL. (Enter your answer with 2 decimal places)

3. Fixed costs of $183,378, variable costs of $6.40 per unit, and a sales price per unit of $16.38. Calculate the break-even point in units. (Enter answer rounded to closest whole unit)

4. The mixture of long-term funding sources that a firm uses to finance its assets is:

A. capital structure

B. financial leverage

C. operating leverage

D. debt operations