Given the following information:

Price/Unit 225

VC/Unit 75

FC 500,000

Tax Rate 21%

Rate 10%

Machine Cost 3,000,000

Life 4

Depreciation Straight Line

1) Calculate the equivalent annual cost of the machine. (Round to 2 decimals)

2) Calculate the financial break-even number of units for the project. (Round to 2 decimals)

3) Using the FBE units, calculate the annual operating cash flows for the project. (Round to 2 decimals)

4) Calculate the accounting break-even number of units for the project. (Round to 2 decimals)