Lee Inc. just purchased a digital color printer for $$360,000$ to launch its $5-$year

project. This printer will be fully depreciated by the straight$-$line method over its SIX$-$year

economic life, and will be sold for $$70,000$ in five years at the termination of the project.

The project requires an initial NWC investment of $$75,000$ that Lee Inc. can recover only

$98\%$ of the amount at the termination of the project. The tax rate is $21\%$ and the discount

rate is $12\%,$ compounded monthly. In addition, the per unit variable cost is $$20,$ and annual

fixed costs are $$250,000$ based on an anual sales of $50,000$ copies.

$($a$)$ Calculate the annual break$-$even operating cash flow of the publishing project.

$($b$)$ Calculate the minimum price per copy that Lee needs to be able to attain to justify

the acceptance of the publishing project. $$$$27\mathrm{.}24>$