We are evaluating a project that costs $$1,860,000,$ has a $6-$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 $89,300$ units per year. Price per unit is $$38\mathrm{.}31,$ variable cost per unit is $$23\mathrm{.}50,$

and fixed costs are $$833,000$ per year. The tax rate is $21$ percent, and we require a return of $9$ percent on this project.

a$.$ Calculate the base$-$case operating cash flow and NPV$.$

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What is the sensitivity of NPV to changes in the sales figure?

Note: Do not round intermediate calculations and round your answer to $3$ decimal places, e$.$g$.,32\mathrm{.}161.$

c$.$ If there is a $450-$unit decrease in projected sales, how much would the NPV change?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer

to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

d$.$ What is the sensitivity of OCF to changes in the variable cost figure?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer

to the nearest whole number, e$.$g$.,32.$

e$.$ If there is a $$1$ decrease in estimated variable costs, how much would the OCF change?

Note: Do not round intermediate calculations and round your answer to the nearest whole number, e$.$g$.,32.$