We are evaluating a project that costs $925,000, has a nine-year life, and a salvage value of $115,000. Assume a straight-line depreciation over the life of the project. Sales are projected at 55,000 units per year, price per unit is $63, variable costs per unit is $37, and fixed costs are $850,000 a year. The tax rate is 21% and we require a return of 10% on this project. Required (a) Calculate the accounting break-even point. (5 marks) (b) Calculate the financial break-even point. (10 marks) (c) Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit increase in projected sales. (20 marks) (d) What is the sensitivity of OCF to changes in the variable cost figure? Explain what your answer tells you about a $1 decrease in estimated variable costs. (10 marks) (e) Suppose the projections given in price, quantity, sales figure, and fixed and variable costs, are all accurate within 10%. Calculate the best-case and worst-case NPV figures.