A company currently produces 90 machines per year that each sell for $250,000. The company is financed totally with equity that costs 12% per year and its assets total $8 million. The variable cost of producing each machine is $200,000 and the fixed production costs are $3 million per year. Because of tax loss carry-forwards, the companys effective tax rate is 0%. The company is considering a $4 million investment that would allow sales to increase by 25 machines per year, decrease variable costs by $10,000 per machine, and increase fixed costs by $3 million. 1. What is the current breakeven point? 2. What would be the new breakeven point if the company makes the investment? 3. What would be the rate of return on the investment? 4. Should the company make the investment? (yes or no)