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We are evaluating a project that costs $786,000, has an eight-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 $786,000, has an eight-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 65,000 units per year. Price per unit is $48, variable cost per unit is $25, and fixed costs are $725.000 per year. The tax rate is 22 percent, and we require a, return of 10 percent on this project. a-1. Calculate the accounting break-even point. (Do not round intermediate calculations ond round your answer to the nearest whole number, e.g., 32.) a.2. What is the degree of operating leverage at the accounting break-even point? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b-1. Calculate the base-case cash flow and NPV. (Do not round intermediate calculations. Round your cosh flow answer to the nearest whole number, e.g., 32. Round your NPV answer to 2 decimal ploces, e.g., 32.16.) b-2. What is the sensitivity of NPV to changes in the quantity sold? (Do not round intermediate calculations and round your onswer to 3 decimal places, e.g., 32.161.) c. What is the sensitivity of OCF to changes in the variable cost figure? (A negotive onswer should be indicated by a minus sign. Do not round intermediate colculations and round your onswer to the nearest whole number, e.g., 32.)

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