Consider a project to supply Detroit with $25,000$ tons of machine screws annually for automobile production. You will need an initial $$4,500,000$ investment in threading equipment to get the project started; the project will last for $5$ years. The accounting department estimates that annual fixed costs will be $$1,075,000$ and that variable costs should be $$200$ per ton; accounting will depreciate the initial fixed asset investment straight$-$line to zero over the $5-$year project life. It also estimates a salvage value of $$450,000$ after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $$302$ per ton. The engineering department estimates you will need an initial net working capital investment of $$430,000.$ You require a return of $11$ percent and face a tax rate of $22$ percent on this project. Calculate the accounting, cash, and financial break$-$even quantities.Consider a project to supply Detroit with $25,000$ tons of machine screws annually for

automobile production. You will need an initial $$5,400,000$ investment in threading

equipment to get the project started; the project will last for $6$ years. The accounting

department estimates that annual fixed costs will be $$1,300,000$ and that variable costs

should be $$245$ per ton; accounting will depreciate the initial fixed asset investment

straight$-$line to zero over the $6-$year project life. It also estimates a salvage value of

$$675,000$ after dismantling costs. The marketing department estimates that the

automakers will let the contract at a selling price of $$356$ per ton. The engineering

department estimates you will need an initial net working capital investment of

$$520,000.$ You require a return of $9$ percent and face a tax rate of $21$ percent on this

project.

a$.$ Suppose you're confident about your own projections, but you're a little unsure about

Detroit's actual machine screw requirement. What is the sensitivity of the project OCF

to changes in the quantity supplied? $($Do not round intermediate calculations and

round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the sensitivity of NPV to changes in quantity supplied? $($Do not round

intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ Given the sensitivity number you calculated, what is the minimum level of output

below which you wouldn't want to operate? $($Do not round intermediate calculations

and round your answer to the nearest whole number, e$.$g$.,32)$

a$.\frac{?}{{?}_{\frac{?}{?}}OC}\frac{F}{\frac{?}{{?}_{\frac{?}{?}}}}Q$

b$.\frac{?}{{?}_{\frac{?}{?}}NP}\frac{V}{}Q$

c$.$ Minimum level of output