We are evaluating a project that costs $768,000 has a six-year life and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projectted at 57,000 units per year. Price per ynit is $60, cariable cost per unit is $35 and fixed costs are $770,000 per year. The tax rate is 35 percent, and we reauire a 15 percent return on this project.

We are evaluating a project that costs $768,000, has a six-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 57.000 units per year Price per unit is $60, variable cost per unit is $35. and fixed costs are 5770,000 per year. The tax rate is 35 percent, and we require a 15 percent return on this project 6. Calculate the accounting break-even point. (Do not round intermediate calculations and round your final answer to 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 answers to 2 decimal places. (eg. 32.16)) Cash flow NPV b-2What is the sensitivity of NPV to changes in the sales figure? (Do not round Intermediate calculations and round your final answer to 3 decimal places. (e.g.. 32.161)) ANPVIAD c. What is the sensitivity of OCF to changes in the variable cost figure? (Do not round intermediate calculations and Negative amount should be indicated by a minus sign.) AOCF/AVC