1. A project will cost $180,000. The after-tax future cash flows are expected to be $50,000 annually for 7 years. Based on the above information, what is the project's DPB if the interest rate is 8%?
2. Given the following information, what is the financial break-even point? Initial investment = $220,000; variable cost = $85; fixed cost = $42,000; price = $100; life = 5 years, required return = 10%; SL depreciation; before-tax salvage value of assets = $30,000; initial net working capital investment = $10,000, and tax rate is 15%.