2. Using the information in Question 1, what is the break-even market size for the project? Show your work, and round to the nearest unit.

Please answer QUESTION 2 by showing all formulas and work without using excel.

THIS IS QUESTION 1 FOR REFERENCE!!!! USE QUESTION 1 TO SOLVE 2, THANK YOU

1. Consider a project with annual expected income based on approximately $125 million in revenue and approximately $77.5 million in total variable cost. You realize that both of these numbers are projected, and that your projections may be incorrect. Your boss wants you to conduct a sensitivity analysis to determine whether the project is a winner. You are entering an established market, and you know the market size will be 1,000,000 units. You are unsure of your exact market share, the price you will be able to charge, and your variable cost per unit, but have determined a range of possible values for each (in the table below). Your initial investment cost is $165 million, but you already own the plant and equipment, which are fully depreciated. Your fixed costs will be $2 million per year. There are no new NWC requirements, and there will be no salvage value because the project does not have a finite lifetime. The tax rate is 35%. The discount rate is 17%.

	Pessimistic	Expected	Optimistic
Market Share	3.9%	5.0%	6.1%
Price/unit	$2410	$2500	$2590
VC/Unit	$1980	$1550	$960

AGAIN PLEASE ANSWER QUESTION 2 "What is the break-even market size for the project"