Ho nE Ger e on Per Tig anal con per untr $3\%$ an e $51853506000$

a cyuratee accous in breake en wine Wire is ete deer $0$ of operatin his erase at the

accounting break$-$even point?

$$Calculate the base$-$case cash flow and NPV$.$ What is the sensitivity of NPV to changes in the quantity sold? Explain what your answer tells you about a $500-$unit decrease in the quantity sold.

$$What is the sensitivity of OCF to changes in the variable cost figure? Explain what your answer tells you about a S$1$ decrease in estimated variable costs.

G

H

$4$

$5$

$18$

$19$

$20$

$21$

$22$

$23$

$24$

a$.$

$25$

$26$

$27$ b$.$

$28$

$29$

$30$

$31$

$32$

$33$

C$.$

$34$

$35$

Input area:

$6$

Initial cost

$$845,000\mathrm{.}00$

$7$

Project life

$8$

$8$

Units sales

$51,000$

$9$

Price$/$unit

$$53\mathrm{.}00$

$10$

Variable cost$/$unit

$$27\mathrm{.}00$

$11$

Fixed costs

$$950,000\mathrm{.}00$

$12$

Tax rate

$22\%$

$13$

Required return

$10\%$

$14$

b$.$

New quantity for calculation

$52,000$

$15$

Projected sales change

$(500)$

$16$

C$.$

New VC for calculation

$$28\mathrm{.}00$

$17$

Projected VC change

$($$$1\mathrm{.}00)$

fusellso answer this quese gi$.$ Thie oct must be calculated his geese depreciation tae shee baapproach

Output area:

Depreciation per vear

Accounting break$-$even

DOL

Base OCF

Base NPV

OCF at new quantity

NPV at new quantity

ANPV$/$AQ

Change in NPV for given quantity change

OCF

AOCF$/$AVC

Change in OF for given VC change

$*$

$$