We are evaluating a project that costs $989,000, has an fourteen-year life, and has no salvage value. Assume thatn depreciation is straight-line to zero over the life of the project.n Sales are projected at 127,000 units per year. Price per unit isn $38, variable cost per unit is $22, and fixed costs are $1,003,835n per year. The tax rate is 34 percent, and we require a 16 percentn return on this project.

Requirement 1:

Calculate the accounting break-even point.(Round yourn answer to the nearest whole number. (e.g., 32))

 

Break-even point

units

Requirement 2:

(a)	Calculate the base-case cash flow and NPV.(Do notn include the dollar signs ($). Round your answers to 2 decimaln places. (e.g., 32.16))

 

Base-case cash flow	$
NPV	$

 

(b)	What is the sensitivity of NPV to changes in the salesn figure? (Do not include the dollar sign ($). Roundn your answer to 3 decimal places. (e.g., 32.161))

 

Sensitivity of NPV

$

 

(c)	Calculate the change in NPV If there is a 500-unit decrease inn projected sales. (Do not include the dollar sign ($).n Negative amount should be indicated by a minus sign. Round yourn answer to 2 decimal places. (e.g., 32.16))

Change in NPV

$

Requirement 3:

(a)	What is the sensitivity of OCF to changes in the variable costn figure? (Do not include the dollar sign ($). Negativen amount should be indicated by a minus sign. Round your answer ton the nearest whole number. (e.g., 32))

Sensitivity of OCF

$

 

(b)	Calculate the change in OCF if there is a $1 decrease inn estimated variable costs. (Do not include the dollarn sign ($). Round your answer to the nearest whole number. (e.g.,n 32))

 

Change in OCF

$

Problem 3-20 (Algo) Calculate profitability and liquidity measures LO 3-3, 3-4, 3-6 Presented here are the comparative balance sheets of Hames Incorporated at December 31, 2023 and 2022. Sales for the year ended December 31, 2023, totaled $640,000.