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Initial cost Project life Units sales Price/unit Variable cost/unit Fixed costs Tax rate Required return b. New quantity for calculation Projected sales change c.

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Initial cost Project life Units sales Price/unit Variable cost/unit Fixed costs Tax rate Required return b. New quantity for calculation Projected sales change c. New VC for calculation Projected VC change $845,000.00 8 51,000 $53.00 $27.00 $950,000.00 22% 10% 52,000 (500) $28.00 ($1.00) (Use cells A6 to C17 from the given information to complete this question. You must use the built-in Excel function to answer this question. The OCF must be calculated using the depreciation tax shield approach.) Output area: a. Depreciation per year Accounting break-even DOL b. Base OCF Base NPV $105,625 40,600.96 $376,000.00 OCF at new quantity NPV at new quantity DNPV/DQ Change in NPV for given quantity change c. OCF DOCF/DVC Change in NPV for given VC change $175,406.77 ($26,500.00) * ($13,500.00) *

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