please provide only the CORRECT answers.

A)

Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:

YearUnit Sales174,000287,0003101,000496,000577,000

Production of the implants will require $1,530,000 in net working capital to start and additional net working capital investments each year equal to 20 percent of the projected sales increase for the following year. Total fixed costs are $1,430,000 per year, variable production costs are $230 per unit, and the units are priced at $345 each. The equipment needed to begin production has an installed cost of $20,300,000. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS property. In five years, this equipment can be sold for about 25 percent of its acquisition cost. AAI is in the 30 percent marginal tax bracket and has a required return on all its projects of 19 percent.Table 8.3.

What is the NPV of the project?(Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

NPV=$

What is the IRR?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

IRR =%

B)

We are evaluating a project that costs $832,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 40,000 units per year. Price per unit is $40, variable cost per unit is $15, and fixed costs are $700,000 per year. The tax rate is 35 percent, and we require a return of 18 percent on this project.

a.Calculate the accounting break-even point.(Do not round intermediate calculations and round your final answer to nearest whole number (e.g., 32).)

Break-even pointunits=

b-1Calculate the base-case cash flow and NPV.(Do not round intermediate calculations and round your NPV answer to 2 decimal places (e.g., 32.16).)

Cash flow=$

NPV=$

b-2What is the sensitivity of NPV to changes in the sales figure?(Do not round intermediate calculations and round your final answer to 3 decimal places (e.g., 32.161).)

NPV/Q=$

b-3Calculate the change in NPV if sales were to drop by 500 units.(Enter your answer as a positive number.Do not round intermediate calculations and round your answer to 2 decimal places (e.g., 32.16).)

NPV would decrease or increase ?

by how much= $

c.What is the sensitivity of OCF to changes in the variable cost figure?(Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to nearest whole number (e.g., 32).)

OCF/VC=$