Use the following information for the following four questions. Your company may introduce a new line of tennis shoes. You have been given the following projections: sales =50,000 units @$100 per unit; variable costs =$55 per unit; fixed costs =$300,000 per year; initial investment = $4,000,000; interest expense =$125,000 per year; project life =10 years. The corporate tax rate is 35% ? You may assume straight-line depreciation and a discount rate of 10%. 25. What is the earnings before interests and taxes (EBIT) for this project? A) $498,750 B) $926,250 C) $1,026,250 D) $1,326,250 E) $1,550,000 26. What is the net income for this project? A) $498,750 B) $926,250 C) $1,026,250 D) $1,326,250 E) $1,550,000