2) We are evaluating a project that costs $841,434, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 55,406 units per year. Price per unit is $43, variable cost per unit is $22, and fixed costs are $421,405 per year. The tax rate is 35%, and we require a return of 18% on this project.

Calculate the Accounting Break-Even Point. (Round answer to 0 decimal places. Do not round intermediate calculations)

3)

We are evaluating a project that costs $836,117, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 63,362 units per year. Price per unit is $38, variable cost per unit is $16, and fixed costs are $424,469 per year. The tax rate is 35%, and we require a return of 18% on this project.

Calculate the Financial Break-Even Point. (Round answer to 0 decimal places. Do not round intermediate calculations)

4)

We are evaluating a project that costs $836,271, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 61,667 units per year. Price per unit is $35, variable cost per unit is $16, and fixed costs are $424,396 per year. The tax rate is 35%, and we require a return of 18% on this project.

In dollar terms, what is the sensitivity of NPV to changes in the units sold projection? (Round answer to 2 decimal places. Do not round intermediate calculations)

5)

We are evaluating a project that costs $841,864, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 61,944 units per year. Price per unit is $35, variable cost per unit is $18, and fixed costs are $423,640 per year. The tax rate is 35%, and we require a return of 20% on this project.

In percentage terms, what is the sensitivity of OCF to changes in the variable cost per unit projection? (Round answer to 2 decimal places. Do not round intermediate calculations)