You are evaluating a project that costs $650,000, has a five 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 60,000 units per year. Price per unit is $46, variable cost per unit is $28, and fixed costs are $720,000 per year. The tax rate is 25 percent, and you require a 11 percent return on this project.

1.Calculate the accounting break-even point.

2.Calculate the cash flow (OCF).

3.Calculate the Net Present Value (NPV).