$5.$ We are evaluating a project that costs $$864,000,$ has an

eight$-$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 $71,000$ units per year. Price per unit is $$49,$ variable

cost per unit is $$33,$ and fixed costs are $$765,000$ per year. The

tax rate is $35$ percent, and we require a return of $10$ percent on

this project.$$a$.$ Calculate the accounting break$-$even point. What is the degree

of operating leverage at the accounting break$-$even point?$$b$.$ Calculate the base$-$case cash flow and NPV$.$ What is the

sensitivity of NPV to changes in the sales figure? Explain what

your answer tells you about a $500-$unit decrease in projected

sales.$$c$.$ What is the sensitivity of OCF to changes in the variable

cost figure? Explain what your answer tells you about a $$1$ decrease

in estimated variable costs.