(Lecture 7 - Capital Budgeting (Break-even, Sensitivity, Scenario)) ABC Corp. makes printers. The firm is considering purchasing a new piece of equipment in Year 0 before the production of printer. Each printer can be sold for $100. The materials cost for each printer is $40. The incremental selling, general and administrative (SG&A) expenses are $10,000 each year. The equipment costs $250,000 and is depreciated straight-line over 5 years to a salvage value of zero. At the end of year 5, the project terminates. For simplicity, make the following assumptions. Changes in net working capital are zeros for each year (from Year Oto Year 5). Revenue, cost of goods sold, and SG&A expenses remain the same over the 5-year period. The accounting break-even level of quantity sold is per year. Assume a tax rate of 30 percent, a 5-year project life, and a discount rate of 16 percent Instruction. Round your numerical answer to the nearest integer