We are evaluating a project that costs $1,120,000, has a ten-year life, and has no salvage value Assume that depreciation is straight line to zeros over the life of the project. Sales are projected at 64.000 units per yeve Price per unit is $39, vanable cost per unit is $23, and faed costs are $700,000 per year The tax rate is 22 percent, and s equire a return of 12 percent on this project A Calculate the accounting break even port (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16) b-1. Calculate the base case cash Sow and NPV (Do not round intermediate calculations and round your NPV answer to 2 decimal places, eg, 32.16) 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, eg, 32.161) b-3 Calculate the change in NPV d sales were to drop by 500 units (Enter your answer a positive number. De not round intermediate calculations and round your answer to 2 decimal places, .32.16) What is the sermitity 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, eg, 32) Break even port b-1. Cash flow NPV 2 MPVIAO 63 PV AOCFIAVC ints by 6 a -> 2 #M 3 M Z alt S acer C C e x 54 d 96 5 6 O f g V &7 y h b rands. How to Start An Ev Hynd Event Evolut How To Start An Ev. How to Work F We are evaluating a project that costs $1.120,000, has a ten-year ide, and has no salvage value that depreciation is straight line to zero over the the of the project Sales are projected at 64,000 per year. Price per unit is $39. variable cost per unit is $23, and fixed costs are $700,000 per year. The tax rate is 22 percent, and we require a retum of 12 percent on this project Calculate the accounting break even point (Do not round intermediate calculations and round your answer to 2 decimal places, eg, 32.16) b-1. Calculate the base-case cash flow and NPV (Do not round intermediate calculations and round your NPV answer to 2 decimal places, eg, 32.16) b-2. What is the sensitivity et NPV to changes in the sales figure? De not round intermediate calculations and round your answer to 3 decimal places, ag, 32.161) b-3. Calculate the change in NPV 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 g., 32.16) 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, g. 32) Break even point b.1. Cash fo NPV 6-2 ANVISO 6.3 MPV would AOCRAC 1 1 0 units acer G D $ % ^ -> # #m 3 C 4 @2 W S a N e r S O 6 & 27 y d f g h X C V b