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We are evaluating a project that costs $520,000, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over

We are evaluating a project that costs $520,000, has a six-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 73,000 units per year. Price per unit is $45, variable cost per unit is $30, and fixed costs are $840,000 per year. The tax rate is 35 percent, and we require a 10 percent return on this project.

A) Calculate the accounting break-even point.(Do not round intermediate calculations and round your final answer to nearest whole number. (e.g., 32))

B) Calculate the base-case cash flow and NPV.(Do not round intermediate calculations and round your NPV answers to 2 decimal places. (e.g., 32.16))

C) What is the sensitivity of NPV to changes in the sales figure?(Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161))

D) What is the sensitivity of OCF to changes in the variable cost figure?(Do not round intermediate calculations and Negative amount should be indicated by a minus sign.)

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