An investment Peter is considering the purchase of a refrigerated van in which he can travel and deliver cakes and other items to customers living in remote areas. He estimates the following information for the potential purchase. Machine Original outlay.r for purchase of the space 90.000 (beginning of Year 1) Expected net cash inow Year 1 10.000 Year2 14.000 Year 3 16.000 Year. 18.000 Estimate residual value 12.000 Peter thinks the cost of capital to be 12% and uses straight-line depreciation. He has sufcient funds to meet all capital expenditure requirements. Required a. Calculate the net present value for the investment and state {with a justification of your answer) whether it should be accepted. Breaking even on a product Peter is thinking of producing custommade fancyr birthday cakes with his assistant. The cakes will have an electronic chip that will sing :Happy Birthday...) when the candle is lit. He averages out the variable costs to be the following per cake: 1. ngredients = $18 2. Electronic Chip : $14 3. Decorations : $8 4. _abour = $50 He attributes xed costs of $1,440 per month to this product and thinks he could sell each cake for $150 dollars. Required a. How many cakes does Peter need to sell per month to break even? b. If Peter sells 60 cakes per month what is the margin of safe'q.r in dollars