1. What is the difference between capital structure and capital budgeting? Explain and give an example of a capital structure decision and an example of a capital budgeting decision.

2. A proposed new investment has projected sales of $839,000. Variable costs are 53 percent of sales, and fixed costs are $187,730; depreciation is $98,000. Assume a tax rate of 40 percent.

What is the projected net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Net income            $