Question 8 O out of 6 points X As the finance manager of a com ou are presented with the folowing project. The company is considering the purchase of a new piece of equipment which would cost $200,000. This equipment will have a four-year useful life and have a salvage value of $0 at the end of the four-year period. It is estimated that the incremental overhead for running the equipment will be $20,000 per year. they can sell the shelves for $25 each. the cost of sales is $15 per shelf. Net Working Capital requirements for the project are as follows: Year 0 = $10,000 . Year 1 = $15,000 . Year 2 = $17,000 . Year 3 = $15,000 Year 4 = $0 The company has a 30% marginal tax rate and a cost of capital of 15%. Question: How many shelves does the company need to sell such that it will achieve an economic break-even? Response Feedback: Refer to the ppt file "3.3 Economic Break-even to the slide 4 example". Hint: set annual unlevered net income for Years 1-4 to be a constant C. Question 8 O out of 6 points X As the finance manager of a com ou are presented with the folowing project. The company is considering the purchase of a new piece of equipment which would cost $200,000. This equipment will have a four-year useful life and have a salvage value of $0 at the end of the four-year period. It is estimated that the incremental overhead for running the equipment will be $20,000 per year. they can sell the shelves for $25 each. the cost of sales is $15 per shelf. Net Working Capital requirements for the project are as follows: Year 0 = $10,000 . Year 1 = $15,000 . Year 2 = $17,000 . Year 3 = $15,000 Year 4 = $0 The company has a 30% marginal tax rate and a cost of capital of 15%. Question: How many shelves does the company need to sell such that it will achieve an economic break-even? Response Feedback: Refer to the ppt file "3.3 Economic Break-even to the slide 4 example". Hint: set annual unlevered net income for Years 1-4 to be a constant C