4. Cash outlays that had been previously made and have no effect on the cash flows relevant to a new capital budgeting project are called a. incremental historical costs. b. incremental past expenses C. opportunity costs. d. sunk costs. Use the following information to answer the next 2 questions Zero Industries has made the forecast of sales and the probabilities of sales occurring and are shown in the table below. Sales $300,000 .30 $500,000 40 $600,000 .30 The firm has fixed operating costs of $125,000 and variable operating costs are 60 percent of sales. The firm is in the 21 percent marginal tax rate. The firm has total assets that equals $600,000 and anticipates changing to a 30 percent debt ratio. The interest rate on debt is expected to be 9 percent The company currently has 15,000 shares of common stock outstanding 5. Compute the EBIT for the sales level of $300,000 only a. $120,000 b. $175,000 C -$5,000 d. $1,500 6. Compute the EPS for the sales level of $300,000 only. a. -$.85 b. -$.92 c. $1.12 d. -$3.35