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A company invested $400,000 to develop a new computer. The variable costs were $65 per unit and fixed costs were $175,000. It is expected to take four years to become marketable. The computers will sell for $100. The project's cost of capital is 12.5%.

a) What is the project's financial break even point in units?
b) The computers have hit the market and there is a 35% increase in sales. What is the percent change in OCF after the first year of sales?

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