Question: We are evaluating a project that costs $845,000. has an eight-year life, and has no salvage value Assume that depreciation is straight-ine to zero over

 We are evaluating a project that costs $845,000. has an eight-year

We are evaluating a project that costs $845,000. has an eight-year life, and has no salvage value Assume that depreciation is straight-ine to zero over the life of the project. Sales are projected at 51,000 units per year. Price per unit is $53, variable cost per unit is $27, and fixed costs are $950.000 per year. The tax rate is 22 percent, and we require a return of 10 percent on this project. a. Calculate the accounting break-even point (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Calculate the base-case cash flow and NPV (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 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 2 decimal places, e.g., 32.16.) 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.)

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