Problem:
Athena Corp. wants to invest $8,000 in a project with estimated cash flows as follows: Yr 1: $1,250 Yr. 2: $1,700 Yr. 3: $2,157 Yr. 4: $2,734 Yr. 5: $3,107.
Required:
Question 1: At what cost of capital would Athena break even on this project?
Question 2: What if the project cost was lowered to $7,800?
Note: Please show guided help with steps and answer.