The Toys&Us company recently installed a new machinery in their plant. The machines initial cost is $2000 and can be depreciated on a straight-line basis to a zero salvage in 5 years. The machines per year fixed cost is 1500, and its variable cost is $0.50 per unit. The selling price per unit is $1.50. Toys&Us tax rate is 34% and it uses a 16% discount rate. Answer the following questions: (a) Calculate the machine's accounting break-even point on the new machine. [3 marks] (b) Calculate the machine's present value break-even point stock price? [5 marks] (c) Assess the adequacy of existing mechanisms to resolve conflicts of interest between corporations and stockholders. [8 marks; Word Limit 300 words] (b) Some argue that the real option approach is better than the NPV approach for analysing financial decisions made by project managers. Compare NPV approach and real option approach as alternative mechanisms for evaluating and appraising investment projects. [9 marks; Word Limit 300 words)