FBA Corporation manufactures paper flowers. Each flower can be sold for $10. The materials cost for each flower is $4. The fixed costs incurred each year for factory maintenance and administrative expenses are $200,000. FBA needs to invest $1,000,000 to buy the machinery to produce the paper flowers. The machine is depreciated straight-line over 8 years to a salvage value of $200,000 and is sold at $200,000 at the end of year 8. The tax rate is 40% and the discount rate is 10%. (a) What are the accounting break-even (i) quantity (units) and (ii) sales ($)?

(b) What is the project NPV at the accounting break-even level?

(c) What are the NPV break-even (i) quantity (units) and (ii) sales ($)?

(d) What is the project NPV at the NPV break-even level? Show detail computations for your answer.