II. A company is evaluating a project that costs $1,675,000, has a six year life, and has no salvage value. Depreciation is computed using the straight line method over the life of the project towards a zero value. Sales are projected at 91,000 units per year. Price per unit is $35.95, variable cost per unit is $21.4 and fixed cost is $775,000 per year. Tax rate is 35% and required return is 10%. a) Compute the base-case cash flow and NPV. What is the sensitivity of NPV to a 500 unit decrease in projected sales? b) What is the sensitivity of operating cash flow to a $1 decrease in the variable cost