If You are evaluating a project that cost $732,000, This project has a five year life, no salvage value, The Depreciation is straight-line to zero for the life of the project. Sales are projected at 55,000 unites per year. Price per unit $60, variable cost per unit is $30 and fixed cost are $732,000 per year. The tax rate is 35 percent and we require a return of 12 percent on this project.

what is the break-even point?

calculate the base case cash flow and NPV

What is the sensitivity of NPV to changes in the sales figures

Calculate the changes in NPV if sales were to drop by 500 units

What is the sensitivity of OCF to changes in the variable cost figure