The Mini-Max Company is evaluating a new project producing financial calculators. They expect to be able to sell each calculator for $30.00. Variable costs are $12.00 per unit and fixed costs are expected to be $75,000 per year. They expect to be able to sell 10,000 calculators each year for the next 5 years, after which they will replace this model with an improved model. The project requires an initial investment of $275,000 in capital equipment that will be depreciated on a straight-line basis to a zero book value over 5 years. The project also requires an investment of $10,000 in net working capital to start the project and $2,500 in net working capital at the beginning of year 2 (Hint: This is the end of year 1). All of the net working capital will be returned to the firm at the end of the project. The required return for this project is 12% and the firms marginal tax rate is 35%.

a) What is the NPV of this project? b) How many units need to be sold each year for the firm to break even (on a present value basis)?

Need Help with Part B. Thank you!