Problem $7-1$ Sensitivity Analysis and Break$-$Even Point

We are evaluating a project that costs $$800,000,$ has a life of $8$ years, and has no salvage value. Assume that depreciation is straight$-$line to zero over the life of the project. Sales are projected at $60,000$ units per year. Price per unit is $$40,$ variable cost per unit is $$20,$ and fixed costs are $$800,000$ per year. The tax rate is $21$ percent, and we require a return of $11$ 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$.,32.)$

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$.,32\mathrm{.}16.)$

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$.,32\mathrm{.}161.)$

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$.,32.)$

$\backslash$table$[[$a$.$ Break$-$even point,$45,000,$units$],[$b$-1.$ Cash flow,,$],[$b$-1.$ NPV$,,],[$b$-2.\frac{?}{{?}_{\frac{?}{?}}NP}\frac{V}{\frac{?}{{?}_{\frac{?}{?}}}}Q,,],[$c$.\frac{?}{{?}_{\frac{?}{?}}OC}\frac{F}{\frac{?}{{?}_{\frac{?}{?}}}}VC,,]]$