1. A company is considering a project costing $200,000. The hurdle rate is 14 percent and the project is expected to yield an annuity for 8 years. For the project to be accepted, the annual annuity must be equal to or greater than (approximately) ________.

   1. $39,223

   2. $57,556

   3. $62,389

   4. $43,114

1. The break-even point is the sales volume which is required for total revenues to equal fixed costs.

   1. True
   2. False