Remember to explain all your steps and to show all formulas you use before you put numbers into the equations. -Write the formula, substitute the numbers into the formula, say what is left to compute, compute

Use the following information to answer questions 4 and 5 (including their appropriate subsections) D. Newcombe & Associates, Inc., is considering the introduction of a new product. Production of the new product requires an investment of $140,000 in equipment that has a five-year life. The equipment has no salvage value at the end of five years and will be depreciated on a straight-line basis. Newcombe's required return is 15%, and the tax rate is 34%. The firm has made the following forecasts: Base Case Lower Bound Upper Bound Unit Sales 2,000 1,800 2,200 Price per unit $55 $55 $55 $55 Variable cost per $22 $22 $22 unit Fixed cost per year $10,000 $10,000 $10,000 Question 4 (4.1) Assume the base-case forecasts for the Newcombe project. Compute the accounting break-even point. (4.2) Assume the base-case forecasts and no taxes for the project. Compute the cash break-even point. (4.3) Assume the base-case forecasts and no taxes for the project. Compute the financial break- even point. Use the following information to answer questions 4 and 5 (including their appropriate subsections) D. Newcombe & Associates, Inc., is considering the introduction of a new product. Production of the new product requires an investment of $140,000 in equipment that has a five-year life. The equipment has no salvage value at the end of five years and will be depreciated on a straight-line basis. Newcombe's required return is 15%, and the tax rate is 34%. The firm has made the following forecasts: Base Case Lower Bound Upper Bound Unit Sales 2,000 1,800 2,200 Price per unit $55 $55 $55 $55 Variable cost per $22 $22 $22 unit Fixed cost per year $10,000 $10,000 $10,000 Question 4 (4.1) Assume the base-case forecasts for the Newcombe project. Compute the accounting break-even point. (4.2) Assume the base-case forecasts and no taxes for the project. Compute the cash break-even point. (4.3) Assume the base-case forecasts and no taxes for the project. Compute the financial break- even point