We are evaluating a project that costs 680000 has a life of 5 years and has no salvage value. Assume that depreciation is straight line to zero over the life of the project. Sales are projected at 64000 units per year. Price per unit is 46, variable cost per unit is 26, and fixed costs are 685000 per year. The tax rate is 24 percent and we require and return of 14 percent on this project.

Calculate the accounting breakeven point, calculate the base case cash flow and NPV, what is the sensitivity of the NPV to changes in the sales figure, what is the sensitivity of OCF to changes in the variable cost figure???