A Moving to another question will save this response. Question 2 10 points Save Answer Capital budgeting must be done on an incremental basis. This means that sunk costs must be ignored, while both opportunity costs and side effects must be considered. True False A Moving to another question will save this response. >>A Moving to another question will save this response. > Question 3 30 points Save Answer Please Solve the exercise and show results and procedure that back your answer for each question. You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone $8.75 Variable costs per abalone $1.23 Fixed costs per year $430,000 Depreciation per year $55,000 Tax rate 35% The discount rate for the company is 13 percent, the initial investment in equipment is $385,000, and the project's economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project's life. a. What is the accounting break-even level for the project? b. What is the financial break-even level for the project? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt v v A v v E x X2 IT The - + X EXE O + P 0 WORDS POWERED BY TINY* Question Completion Status: 1 2 3 4 5 A Moving to another question will save this response. >> Question 4 10 points Save Answer A firm should use the equivalent annual cost approach when choosing between two machines of unequal lives True False A Moving to another question will save this response. >>