Question: i need help please 9. Problem (2 parts) Consider a 5-year project with the following information. Initial fixed asset investment = $720,000. Straight-line depreciation to

9. Problem (2 parts) Consider a 5-year project with the following information. Initial fixed asset investment = $720,000. Straight-line depreciation to zero over the 5-year life, zero salvage value. The tax rate - 21%. If the Operating Cash Flow (OCF) = $545,067 with units of 89,000 sold, and the Operating Cash Flow (OCF) = $553,852 with units of 90,000 sold a. How sensitive is OCF to changes in units sold? (Express as a positive number) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.) a. Sensitivity of OCF to units sold b. What is the formula used to calculate the sensitivy of OCF in a.? (Enter the formula used to calcuate the sensitivity from the formula sheet) b. Formula used to calculate sensitivity in a 8. Problem (4 parts) University Parking, LLC is looking at a new app to manage open parking spots, with an installed cost of $755,000. This cost will be depreciated straight-line to zero over the project's 7-year life, and at the end of which the app can be salvaged for $105,000. The new app will generate Operating Cash Flow (OCF) of $194,214 per year. The app also requires an initial investment in Net Working Capital of $75,000, that will be returned at the end of the project. If the tax rate is 25% and the discount rate is 8%, a. What is the Net Present Value of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.) a. NPV b. What is the formula used to calculate Net Present Value (a)? (Write the number of the formula from the formula sheet) 6. Formula used to calolate part () c. What is the value used for Net Salvage Cash Flow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.) c. Not Salvage Cash Flow
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