We are evaluating a project that costs $1,140,000, has a life of 10 years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 36,000 units per year. Price per unit is $50, variable cost per unit is $20, and fixed costs are $720,000 per year. The tax rate is 23 percent and we require a return of 12 percent on this project.

a.	Calculate the accounting break-even point.
b-1.	Calculate the base-case cash flow and NPV.
b-2.	What is the sensitivity of NPV to changes in the sales figure?
c.	What is the sensitivity of OCF to changes in the variable cost figure?