We are evaluating a project that costs $832,000, 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 40,000 units per year. Price per unit is $47,variable cost per unit is $20, and fixed costs are $698,000 per year. The tax rate is 23 percent, and we require a return of 18 percent on this project.

A. Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to 2 decimal place.)

B-1. Calculate the base-case cash flow and NPV. (Do not round intermediate calculations and round your NPV answer to 2 decimal places.)

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.)

B-3. Calculate the change in NPV if sales were to drop by 500 units. (Do not round intermediate calculations and round your answer to 2 decimal places.)

C. What is the sensitivity of OCF to changes in the variable cost figure? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number.)