Emcor Company is considering spending $197,000 at Time 0 to test a new product. Depending on the test results, the company may decide to spend $545,000 at Time 1 to start production of the product. If the product is introduced and it is successful, it will produce aftertax cash flows of $398,000 a year for Years 2 through 5. The probability of successful test and investment is 60 percent. What is the net present value at Time 0 given a 14 percent discount rate?

A$112,605.38 B$119,353.47 C$126,503.95$ D133,482.31 E $140,297.33

Timken Corporation has the following information related to a new project: Initial investment: $1,420,000; Fixed costs: $474,000; Variable costs: $11.80 per unit; Selling price: $32.50 per unit; Discount rate: 14 percent; Project life: 5 years; Tax rate: 25 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?

A45,255 units B44,968 units C49,828 units D 51,632 units E 43,577 units