Question: Problem 920 Sensitivity Analysis [LO 3] We are evaluating a project that costs $1,770,000, has o byear Mfe, and has no salvage value. Absume that

 Problem 920 Sensitivity Analysis [LO 3] We are evaluating a project

Problem 920 Sensitivity Analysis [LO 3] We are evaluating a project that costs $1,770,000, has o byear Mfe, and has no salvage value. Absume that depreciation b utraight-line to zero over the life of the project. $31 es are projected at 87,000 units per vear. Price per unit is $38.13, yoriable cost per unit is $23.35, a. Calculate the bose-case operating cash flow and NPV Note: Do not round intermediate calculations and round your onswers to 2 decimat places, e.9., 32.16 . b. What is the sensivity of NPV to changes in the sales figure? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.9. 32.161 c. If there is a 300 -unit decrease in projected sales, how much would the NPV change? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g, 32.16 . d. What is the sensitivity of OCF to changes in the variable cost figure? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the roarest whote number, 0,9,32. e. It there is a 51 decrease in estimated variable costs, how much would the OCF change? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32

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