Question: please answer the full question nework i We are evaluating a project that costs $650,000, has a five-year life, and has no salvage value. Assume

nework i We are evaluating a project that costs $650,000, has a five-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 47,000 units per year. Price per unit is $56, variable cost per unit is $26. and fixed costs are $845,000 per year. The tax rate is 35 percent, and we require a return of 10 percent on this project. 0. Calculate the accounting break even point. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Break-even point units b-1 Calculate the base-case cash flow and NPV. (Do not round intermediate calculations and round your NPV answer to 2 decimal places, e.g., 32.16.) Cash flow NPY b-2 What is the sensitivity of NPV to changes in the sales figure? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) ANPVIAQ $0 b-3 Calculate the change in NPV if sales were to drop by 500 units. (Enter your answer as a positive number. Do not round intermediate calculations and round your answer to 2 decimal places, e... 32.16.) NPV would (Click to select) by c. What is the sensitivity of OCF to changes in the variable cost figure? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to the nearest whole number, ... 32.) FOL L OWUJUUUU line to zero over the life of the project. Sales are projected at 47,000 units per year Price per unit is $56, variable cost per unit is $26. and fixed costs are $845,000 per year. The tax rate is 35 percent, and we require a return of 10 percent on this project. a. Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Break-even point b-1 Calculate the base-case cash flow and NPV. (Do not round intermediate calculations and round your NPV answer to 2 decimal places, e.g., 32.16.) Cash flow PV b-2 What is the sensitivity of NPV to changes in the sales figure? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) ANPV/AQ $ b-3 Calculate the change in NPV if sales were to drop by 500 units. (Enter your answer as a positive number. Do not round intermediate calculations and round your answer to 2 decimal places, ... 32.16.) NPV would (Click to select) by $ c. What is the sensitivity of OCF to changes in the variable cost figure? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32.) AOCF/AVC
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