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freakiven Point Schweser Satellites the produces the stations that for $110.000 each. The firm's find costs, 2 million, 50 earth stations are produced and sold each year, profits total $400,000, and the fallity financed) are on The um estimates that it can diange its production processing 55 min to sets and $500,000 to desting couts The change will recevable costs per unit by $11,000 and increase output ty 20 units. However, the sale price on all units must be lowered to $100.000 to permities of the additional output. The firm has taxe low carryforwards that render its tax rate zero, is cost of equity is 15% ont use he debt Whoit u the incremental profie? Enter your answer in dolor for companwer of 54 million should be entered 4,000,000, ook 4. Round your answer to the nearest dollar 5 To get a rough dea of the project's profitability, what is the project's expected rate of return for the next year (dered as the incremental provided by the Investment)? Round your answer to two decimal places Should the firm make the investment? b. Would the firm's break even point increase or decrease if it made the change? The change would be the break-even put Would the new situation expose the firm to more or less business risk than the old one? I. The new situation would obviously have more business risk than the old one II. The new situation would obviously have less business risk than the old one III. It is impossible to state unequivocally whether the new situation would have more or less business risk than the old one

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