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We are evaluating a project that costs $1,160,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over

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We are evaluating a project that costs $1,160,000, 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 44,000 units per year. Price per unit is $45, variable cost per unit is $20, and fixed costs are $645,000 per year. The tax rate is 35 percent, and we require a 20 percent return on this project. a-1 Calculate the accounting break-even point. Break-even point units a-2 What is the degree of operating leverage at the accounting break-even point? (Round your answer to 3 decimal places. (e.g., 32.161)) DOL 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)) NPV c. What is the sensitivity of OCF to changes in the variable cost figure? (Negative amount should be indicated by a minus sign.) AOCF/AVC Consider a four-year project with the following information: initial fixed asset investment = $510,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $20; variable costs = $10; fixed costs = $150,000, quantity sold = 81,000 units; tax rate = 34 percent. How sensitive is OCF to changes in quantity sold? (Round your answer to 2 decimal places. (e.g., 32.16)) AOCFIA

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