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We are evaluating a projoct that costs $848,000, nas an eight-year tite, and has no salvoge value. Assume that depreciotion is straight-line to zero over

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We are evaluating a projoct that costs $848,000, nas an eight-year tite, and has no salvoge value. Assume that depreciotion is straight-line to zero over the life of the project. Sales are projected at 62,000 units per year. Price per unit is $40, variable cost. per unit is $24, and fored costs are $636,000 peryear. The tax rate is 24 percent, and we require a return of 20 percent on this project. a. Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to 2 decimal places, e.9., 32.16.) b-1. Calculate the base-case cash flow and NPV. (Do not round intermediate calculations and round your NPV answer to 2 decimal places, e.9., 32.16.) b2. 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, e.g. 32.161.) b.3. Calculate the change in NPV if sales were to drop by 500 units. (Enter your answer as a positive number. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 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, e.g. 32 .)

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