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We are evaluating a project that costs $1180,000, 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 $1180,000, 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 66.000 units per year Price per unit is $45. varlable cost per unit is $29. and fixed costs are $708.000 per year. The tax rate is 25 percent, and we require a return of 15 percent on this project. al Calculate the accounting break-even point (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Calculate the base-case cash flow and NPV. (Do not round Intermedlate calculations and round your NPV answer to 2 decimal places, e.g., 32.16.) b-2. What is the sensitivity of NPV to changes in the sales figure? (Do not round Intermedlate calculatlons and round your answer to 3 decimal places, e.g., 32.161.) b-3. Calculate the change in NPV if sales were to drop by 500 units. (Enter your answer as a positive number. Do not round Intermediate calculations and round your answer to 2 decimal places. e.g., 32.16.) What is the sensitivity of OCF to changes in the variable cost figure? (A negatlve answer should be Indicated by a minus sign. Do not round Intermedlate calculatlons and round your answer to the nearest whole number. 4.9., 92) al Break-even point 51.625.00 units b-1. Cash flow 290.500 NPN 5 277.952.29 b-2. ANPVAQ b-3 NPV would decrease by 5 12.547.71 0. AOCFIAVG

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