$(50$ points$)$ Toyota is considering adding new machinery to its Georgetown $p$ machine would $$15,000,00,$ and $$200,000$ of maintenance on the machine at the end of proper maintenance, so they plan to do $$200,000$ of maintenance on the males of $$6,000,000,$ and years $2$ and $4.$ With the machine, they expect to have additional annual $$2,200,000.$ they believe there will be additional annual production costs of $$2,200,000.$

The estimated salvage value at the end of the machine's $5-$year life is $$4,000,000,$ but the ants will depreciate it straight$-$line to zero. If the company purchases the machine, the accountants will depreciate it straight$-$line to zero. If the company purchases the relevant tax expanded production will require an additional $$150,000$ rate is $21\%.$ a$.$ Calculate all the relevant cash flows for this project.

b$.$ If the required rate of return is $11\%,$ determine whether the firm should purchase the machine.

Answer any two of the remaining three questions. Each question counts $25$ points.

$2.$ Assume there are no taxes for this question. The firm is exploring a new project where output sells for $$30$ per unit, variable costs are $$18$ per unit, depreciation is $$500$ per year, and annual fixed costs are $$680.$

a$.$ Calculate the accounting break$-$even level of output, and indicate how we define this break$-$even point.

b$.$ Calculate the cash break$-$even level of output, and indicate how we define it$.$

c$.$ If the projected sales for this project are $105,$ and you know there is some margin of error in that projection, how would you use the results from parts a and $b$ to explain the situation to your boss?