AaB A If the required return is 12 percent, what is the project's equivalent annual cost, or EAC? 3, A project requires an initial investment of $1,000,000 and is depreciated straight-line to zero salvage over its 10-year life. The project produces items that sell for $1,000 each, with variable costs of $700 per unit. Fixed costs are $350,000 per year (a) What is the accounting break-even quantity, operating cash flow at accounting break-even, and DOL at that output level? (b) What is the cash flow break-event point? (c) What is the financial break-even point if the required rate of return 10 %? What it the DOL at this output level? AaB 1, Firm XYZ is considering requires an initial fixed asset investment of $2.1 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $200,000, The project requires an initial investment in net working capital of $420,000. The project is estimated to generate $2,560,000 in annual sales, with costs of $1,002,000. The tax rate is 30 percent and the required return on the project is 15 percent. Should the firm consider to accept the project? a new 3-year expansion project that Aa5 2, A project with a life of 10 has an initial fixed asset investment of $50,000, an initial NWC investment of $10,000, and an annual OCF of-$705,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is the project's equivalent annual cost, or EAC? 3, A project requires an initial investment of $1,000,000 and is depreciated straight-line to zero salvage over its 10-year life. The project produces items that sell for $1,000 each, with variable costs of $700 per unit. Fixed costs are $350.000 per year