We are evaluating a project that costs $1,080,000, has a ten-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 52,000 units per year. Price per unit is $50, variable cost per unit is $30, and fixed costs are $730,000 per year. The tax rate is 35 percent, and we require a 15 percent return on this project.

4 7.00 points We are evaluating a project that costs $1,080,000, has a ten-year life, and has no salvage value. Assu that depreciation is straight-line to zero over the life of the project. Sales are projected at 52,000 units pe year. Price per unit is $50, variable cost per unit is $30, and fixed costs are $730,000 per year. The tax rate is 35 percent, and we require a 15 percent return on this project a-1 Calculate the accounting break-even point Break-even point 90500 units a-2 What is the degree of operating leverage at the accountin g break-even point? (Round your answer to 3 decimal places. (e.g., 32.161)) DOL 9.07 b-1 Calculate the base-case cash flow and NPV. (Round your NPV answer to 2 decimal places. (e.g., 32.16)) Cash flow NPV b-2 What is the sensitivity of NPV to changes in the sales figure? (Do not round intermediate calculations and round your answer to 3 decimal places. (e.g., 32.161)) c. What is the sensitivity of OCF to changes in the variable cost figure? (Negative amount should be indicated by a minus sign.)