Chapter 9 ECC Problems C Chegg Study | Guided 5c CWeAre EvaltatingA ProG1,691coo, has a m.tpx Question 17 (of 18) Sawe & ExitSubm 10.00 points Problem 9-18 Sensitivity Analysis and Breakeven [L31 We are evaluating a project that oosts $1,694,000, has a seven-year life, and has no salvage value. Assume that depreclation is straight-line to zero over the life of the project. Sales are projected at 88,700 units per year. Price per unlt is $35.10, variable cost per unit Is $21.35, and tlxed costs are S767,000 per year. The tax rate is 40 percent, and we require a return of 12 percent on this project Calculate the base-case operating cash flow and NPV. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Base case operating cash flow 368375 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, e.g., 32.161.) Sensitivity of NPV S If there is a 500-unit decrease in projected sales, how much would the NPV drop? (Input your answer as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV drop What Is the sensitivity of OCF to changes In the varlable cost tigure? (A negative answer should be Indicated by a minus sign. Do not round intemedlate calculations and round your answer to the nearest whole number, e.g 32.) Sensitivity of OCF If there is $1 decrease in estimated variable oosts, haw much would the increase in OCF be? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Increase in OCF 3:18 PM 117/2017 Type here to search