We are evaluating a project that costs $744,000, has a six-year life, and has no salvage...

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We are evaluating a project that costs $744,000, has a six-yearlife, and has no salvage value. Assume that depreciation isstraight-line to zero over the life of the project. Sales areprojected at 45,000 units per year. Price per unit is $60, variablecost per unit is $20, and fixed costs are $740,000 per year. Thetax rate is 35 percent, and we require a return of 18 percent onthis project. a. Calculate the accounting break-even point. (Do notround intermediate calculations and round your answer to thenearest whole number, e.g., 32.) Break-even point units b-1Calculate the base-case cash flow and NPV. (Do not roundintermediate calculations and round your NPV answer to 2 decimalplaces, e.g., 32.16.) Cash flow $ NPV $ b-2 What is the sensitivityof NPV to changes in the sales figure? (Do not round intermediatecalculations and round your answer to 3 decimal places, e.g.,32.161.) ?NPV/?Q $ c. What is the sensitivity of OCF to changes inthe variable cost figure? (Do not round intermediate calculations.A negative answer should be indicated by a minus sign.) ?OCF/?VC$

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We are evaluating a project that costs $744,000, has a six-yearlife, and has no salvage value. Assume that depreciation isstraight-line to zero over the life of the project. Sales areprojected at 45,000 units per year. Price per unit is $60, variablecost per unit is $20, and fixed costs are $740,000 per year. Thetax rate is 35 percent, and we require a return of 18 percent onthis project. a. Calculate the accounting break-even point. (Do notround intermediate calculations and round your answer to thenearest whole number, e.g., 32.) Break-even point units b-1Calculate the base-case cash flow and NPV. (Do not roundintermediate calculations and round your NPV answer to 2 decimalplaces, e.g., 32.16.) Cash flow $ NPV $ b-2 What is the sensitivityof NPV to changes in the sales figure? (Do not round intermediatecalculations and round your answer to 3 decimal places, e.g.,32.161.) ?NPV/?Q $ c. What is the sensitivity of OCF to changes inthe variable cost figure? (Do not round intermediate calculations.A negative answer should be indicated by a minus sign.) ?OCF/?VC$