1. What is the breakeven quantity for producing a product? How would a higher breakeven quantity relate to
a) A company’s risk
b) Profit earned per unit sold, once a company exceeds the breakeven point?
2. You have been offered the opportunity to invest in a project tht will pay $4,212 per year at the end of the years one through three and $7,504 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 6.91 percent per year. What is the future value of this cash flow pattern at the end of the year five?