Suppose you examining an investment in a new machine (Machine A), which costs $5000. It lasts 5 years and costs $1300/year to operate. Quantity sold will be 500 units/year at a price of $12 each. Average variable costs are $4/unit. The machine will be fully depreciated on a straight-line basis over the course of its life and there is no salvage value. The tax rate is 30% and you need to make a 14% return on your investment. What is the NPV of this investment? Show/explain/calculate. If you could use MACRS instead of the straight-line depreciation method, what would that do to the NPV of the project (Im not asking for a numberIm asking for an intuitive explanation)? What would be the accounting break-even number of units for this investment? What would be the financial break-even number of units for this investment? (20 Points) Look at the situation in #1, but consider an alternative investment in Machine B which costs $8000 up-front. Machine B lasts 9 years and costs $1000/year to operate. Either machine would be replaced on a continuous basis with the same model you start with. Should you invest in Machine A or Machine B? (be sure to show all of your calculations)