18. (6 points) Choose a correct answer for each question. a. (2 points) Determining how many shares of stock to issue is (financing decision, capital budgeting decision, working capital management decision). b. (2 points) Deciding whether or not to purchase a new machine for the production line is (capital structure decision, financing decision, capital budgeting decision). c. (2 points) Determining how much money should be kept in the checking account (investment decision, working capital management decision, capital budgeting decision) Question 19-20. Blue Coffee Co. is considering a new 3-year project. The new project requires initial investment of 240,000 for new machine. The machine is straight-line depreciated to zero over the next three years. O The project is expected to increase the company's sales by $501,000 and the costs by $240,000 each year. This new project is expected to increase interest expenses by $20,000 per year. O The tax rate is 35%. 19. (6 points) What is the projected net income in Year 1? Prepare a pro-forma income statement of Year 1. 20. (6 points) Calculate the depreciation tax shield (tax saving from depreciation expense) in Year 1? 21. (6 points) A project has an accounting break-even point of 6,087 units. The fixed costs are $154,800 and the projected variable cost (v) per unit is $31.16. The project will require $524,000 for fixed assets which will be depreciated straight-line to zero over the project's 4-year life. What is the projected sales price per unit (p)