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We are evaluating a project that ccsts SEWDDD, has an eight-year life, and has no salvage value. Assume that depreciaticn is straightline te zerc ever

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We are evaluating a project that ccsts SEWDDD, has an eight-year life, and has no salvage value. Assume that depreciaticn is straightline te zerc ever the life at the prcject. Sales are prcjected at E units per year. Price per unit is $110. variable ccst per unit is $20, and xed costs are $B, per year. The tax rate is 35 percent1 and we require a 1i] percent return on this prcject. a-'l Calculate the accounting breakeven peint. Break-even paint. 45MB units a-2 What is the degree at cperating leverage at the acecuntin g breakeven paint? [Reund ycur answer to 3 decimal places. [e.g., 32.1611] D... b-1 Calculate the base-case cash ew and NF'V. [Reund your HP'v' answer to 2 decimal places. [e.g., 32.161} Cash flew 5 295000 NW 5 FTEE-E b-2 What is the sensitivity cf NP'v" be changes in the sales gure? [De net reund intermediate calculations and reund ycur answer tn 3 decimal places. [e.g., 32.1511] m... s: c. What is the sensitivity cf 00F to changes in the variable ccst gure? {Negative amcunt shculd be indicated by a minus sign.] achmvc

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