$ Initial cost Project life Units sales Price/unit Variable cost/unit Fixed costs Tax rate Required return 6 A A 845,000 8 51,000 53 27 950,000 22% 12% Output area (cream), final answer in yellow a. Depreciation per year Accounting break-even 40,600.96 Wo u anu c) Input area (green) 845,000 8 51,000 53 A 27 Initial cost Project life Units sales Price/unit Variable cost/unit Fixed costs Tax rate Required return Quantity uncertainty Price uncertainty Variable cost uncertainty Fixed cost uncertainty 950,000 22% 12% 10% 10% 10% 10% Output area (cream), final answer in yellow Annual depreciation $105,625 Base case Best case Worst case Scenario Unit sales Unit price Unit variable cost Fixed costs Base case Best case Worst case OCF NPV 6. (10 points) We are evaluating a project that costs $845,000, has an eight-year ife, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projeded 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%, and we require a return of 12% on this project. a. Calculate the accounting break-even point. b. Calculate the base-case operating cash flow and NPV. c. Suppose the projections given for price per unit, quantity, variable costs per unit, and fixed costs are all accurate to within 10%. Calculate the best-case and worst-ca se NPV figures