Question: BREAK-EVEN & SENSITIVITY ANALYSIS: We are evaluating a project that costs $840000, has an eight-year life, and has no salvage value. Assume that depreciation is

BREAK-EVEN & SENSITIVITY ANALYSIS: We are evaluating a project that costs $840000, 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 60000 units per year. Price per unit is $41, variable cost per unit is $18, and fixed costs are $420000 per year. The tax rate is 35%, and we require a return of 20% 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, round intermediate calculations to 5 decimal places)

In percentage terms, what is the sensitivity of NPV to changes in the units sold projection? (Round answer to 4 decimal places, round intermediate calculations to 5 decimal places)

In dollar terms, what is the sensitivity of OCF to changes in the variable cost per unit projection? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places)

In percentage terms, what is the sensitivity of OCF to changes in the variable cost per unit projection? (Round answer to 4 decimal places, round intermediate calculations to 5 decimal places)

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