(a) The Brick Quick Bhd is evaluating a project that costs RM644,000 which has an eight-year life and no salvage value. Assume that depreciation is straight line to zero over the life of the project. Sales are projected at 70,000 units per year. Price per unit is RM37, variable cost per unit is RM21 and fixed costs are RM725,000 per year. The tax rate is 35 percent and the company require 15 percent return on this project. Calculate:

i. Accounting break-even point.

(3 marks)

ii. Base-case flow and NPV.

(6 marks)

iii. Sensitivity of NPV if the sales change to 71,000 units.

(6 marks)