1. A company is considering a project with a cash break-even point of 16,400 units. The selling price is $37 a unit, the variable cost per unit is $22, and depreciation is $18,000. What is the projected amount of fixed costs? Show your work.

2. ABC is thinking about buying a kiln that costs $24,000. ABC will use the kiln for five years, and expects to be able to sell it as scrap at the end of the five year period for $4,000. The kiln won't add any revenues, but it is more efficient than the existing kiln, so it is expected that it would save the firm $15,608 the first year, $9,396 the second year, $8,162 the third year, $4,816 the fourth year, and $3,649 the fifth and final year. The kiln would be depreciated using standard 3-year MACRS percentages (33%, 45%, 15%, and 7%). ABC's cost of capital is 12 percent. Given that information, what is the NPV of this potential project? Please show all work.