NO EXCEL- handwritten with formulas.

D. New omve & Associates, INC., is considering the introduction of a new product. Production of the new product requires an investment of $140,000 and equipment that has a five-year life. The equipment has no salvage value at the end of five years and will be depreciated on a straight line basis. Newcombe's required return is 15% and the tax rate is 34%. The firm made the following forecasts:

Use the following information to answer questions 4 and 5 (including their appropriate subsections) D. Newcombe \& Associates, Inc, is considering the introduction of a new product. Production of the new product requires an investment of $140,000 in equipment that has a five-year life. The equipment has no salvage value at the end of five years and will be depreciated on a straight-line basis. Newcombe's required return is 15%, and the tax rate is 34%. The firm has made the following forecasts: Question 4 (4.1) Assume the base-case forecasts for the Newcombe project. Compute the accounting breakeven point. (4.2) Assume the base-case forecasts and no taxes for the project. Compute the cash break-even point. (4.3) Assume the base-case forecasts and no taxes for the project. Compute the financial breakeven point