ezto.r hapter 9 Assignment i Saved 6 oints eBook Print References You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone Variable costs per abalone Fixed costs per year Depreciation per year Tax rate $34.80 $5.90 $373,000 $118,000 22% The discount rate for the company is 15 percent, the initial investment in equipment is $826,000, 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the financial break-even level for the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Graw HALL a. Accounting break-even b. Financial break-even units I...... units < Prev 6 of 10 Next > 7 Cook int ences We are examining a new project. We expect to sell 6,300 units per year at $57 net cash flow apice for the next 10 years. In other words, the annual operating cash flow is projected to be $57 x 6,300 = $359,100. The relevant discount rate is 12 percent, and the initial investment required is $1,740,000. a. b. What is the base-case NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) After the first year, the project can be dismantled and sold for $1,610,000. If expected sales are revised based on the first year's performance, below what level of expected sales would it make sense to abandon the project? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. NPV b. Minimum level of expected sales units