*CIOTC changed to COSTCORE (name of company)

THL Inc. is a company producing cell phone screens. They are considering investing (today) $2M on a machine that will be used for 4 years to produce a new product (assume straight line depreciation). Annual fixed costs are estimated to be $300K and variable cost per unit is estimated to be $30. Tax rate is 34%. THL will finance the initial cost of $2M by borrowing from a financial institution, COSTCORE. COSTCORE offers a payment plan to THL in which THL will pay $527, 594.96 per year for 5 years beginning a year from the loan is extended. THL will use the rate COSTCORE charges per year as its discount rate! What should be the per unit price for THL to break-even (accounting break-even) at 100,000 units? What should be the per unit price for THL to financially break-even at 100,000 units? THL would like to incorporate the uncertainty about its production costs into its calculations. There is a possibility that corporate taxes may change very soon (before THL starts production and sales of the new product.) THL estimates that tax rate, will stay at 34% with a 50% chance, go down to 30% with a 30% chance, and go down to 20% with a 20% chance. Variable Costs will stay at $30 with 40%, go down to $25 with %30 chance and go up to $35 with 30% chance. Fixed Costs will stay at $300K with 20%, go down to $280K with %30 chance and go up to $340K with 50% chance. Run a Monte Carlo simulation (1000 times) to find the probability of the price calculated in part (b) to allow THL at least financially break-even