1. Assume DHL needs access to a stream of capital for the next 10 years. If DHL needs $2.5 million per year and can earn 4% interest compounded annually, how much must the company put away today to have these funds when needed? Round to the nearest dollar.
a. 26,000,000 b. 20,277,250 c. 7,924,663 d. 25,000,000 e. 30,015,267
2. A project has a unit price of $19.99, a variable cost per unit of $8.97, fixed costs of $311,520, and depreciation expense of $38,009. Ignore taxes. What is the accounting break-even quantity? (PLEASE SHOW WORK)
a. 28,269 units
b. 15,584 units
c. 17,306 units
d. 38,966 units
e. 31,718 units