We are evaluating a project that costs $822000 has an fifteen-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 82000 units per year. Price per unit is $43 variable cost per unit is $21 and fixed costs are $828576 per year.
The tax rate is 34 percent and we require a 14 percent return on this project. The accounting break-even point is 40154 units. The base-case flow is
$662411.84 and NPV is $3246644.00. The sensitivity of NPV to changes in the sales figure is $ _______ (round to 3 decimal places). If there is a 500-unit
decrease in projected sales we would expect the NPV to change by $ __________ (negative amount should be indicated by a minus sign round to 2 decimal
places)