A company is considering the opportunity to invest into a new 12- year project: manufacturing and selling remote-controlled tree houses. $500,000 would need to be spent upfront to cover the cost of...

Extracted text: A company is considering the opportunity to invest into a new 12- year project: manufacturing and selling remote-controlled tree houses. $500,000 would need to be spent upfront to cover the cost of buying the necessary production equipment, which will be depreciating at a constant rate each year over its 12-year economic life. The equipment will be worthless when the project ends. Additional information regarding the tree houses production: $2,600 in per-tree-house costs, a.k.a. variable cost of production $34,000 in total (i.e., not per tree house) annual fixed production costs Each sold tree house is estimated to bring the company $3,100. The tax rate of 22% applies to the company's taxable income each year. This project requires a 12% annual rate of return. Answer the following: If the company manufactures and sells [Select ] tree houses each year, then it will break even in the "financial" sense. However, if the cost of buying the necessary production equipment turns out [ Select ] the required annual break-even number of sold tree houses would need to be lower.