Question: i need the excel formulas please We are evaluating a project that costs $845,000, has an eight-year life, and has no salvage value. Assume that

i need the excel formulas please  i need the excel formulas please We are evaluating a project
that costs $845,000, has an eight-year life, and has no salvage value.

We are evaluating a project that costs $845,000, 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 51,000 units per year. Price per unit is $53, variable cost per unit is $27, and fixed costs are $950,000 per year. The tax rate is 22 percent, and we require a return of 10 percent on this project. a. Calculate the accounting break-even point. What is the degree of operating leverage at the accounting break-even point? b. 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. c. What is the sensitivity of OCF to changes in the variable cost figure? Explain what your answer tells - you about a $1 decrease in estimated variable costs. 3 4 Input area: 5 6 Initial cost $845,000.00 7 Project life 8 Units sales 51,000! 9 Price/unit $53.00 10 Variable cost/unit $27.00 11 Fixed costs $950,000.00! 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 $28.00 17 Projected VC change ($1.00) 8 answer this question. The OCF must be calculated using the depreciation tax shiel Output area: $105,625 =C8*(C9-C10)-C11- |c24 a. Depreciation per year Accounting break-even DOL b. Base OCF Base NPV OCF at new quantity NPV at new quantity DNPV/DQ Change in NPV for given quantity change C. OCF DOCF/DVC Change in NPV for given VC change Students: The scratchpad area is for you to do any additional work you need to solve this qu Nothing in this area will be graded, but it will be submitted with your assignment. = A Grader Worlchanh

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