1. You are considering a new project. The project has projected depreciation of $720, fixed costs of $6,000, and total sales of $11,760 at a sales quantity of 300 units. The variable cost per unit is $17.40. What is the accounting break-even level of production?

A. 308.26

B. 300.64

C. 297.69

D. 311.60

2. A project has been assigned a discount rate of 12 percent. If the project starts immediately, it will have an initial cost of $480 and cash inflows of $350 a year for three years. If the start is delayed one year, the initial cost will rise to $520 and the cash flows will increase to $385 a year for three years. What is the value of the option to wait?

A. $0.20

B. $1.08

C. $1.67

D. $0.70