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We are evaluating a project that costs $908,000, has a four-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 $908,000, has a four-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 87,200 units per year Price per unit is $34.35, variable cost per unit is $20.60, and fixed costs are $752,000 per year. The tax rate is 40 percent, and we require a return of 13 percent on this project Requirement 1: Calculate the base-case cash flow and NPV. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) cash floww 528,000 NPV Requirement 2: Round your answer to 3 decimal places (e.g., 32.161).) Sensitivity of NPV Requirement 3: intermediate calculations. Input your answer as a positive value. Round your answer to 2 places (e.g, 32.16).) NPV drop What is the sensitivity of NPV to changes in the sales figure? (Do not round intermediate calculations. ir there is a 500-unit decrease in projected sales, how much would the NPv drop? (Do not round decimal Requirement 4: at is the sensitivity of OCF to changes in the variable cost figure? (A negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16)) Sensitivity of OCF Requirement 5: if there is $1 decrease in estimated vaniable costs, how much would the increase in OCF be? (Round your answer to the nearest whole dollar amount (e.g., 1,234,567)) Increase in OCF

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