We are evaluating a project that costs $887000 has an fifteen-year life and ha

We are evaluating a project that costs $887000 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 110000 units per year. Price per unit is $36 variable cost per unit is $23 and fixed costs are $894983 per
year. The tax rate is 37 percent and we require a 18 percent return on this project.

The accounting break-even point is units.
(Round your answer to the nearest whole number. (e.g. 32))

The base-case cash flow is $ and NPV is $
. (Do not include the
dollar signs ($). Round your answers to 2 decimal places. (e.g. 32.16)) The sensitivity of NPV to changes in the sales figure is $
. (Do not include the dollar
sign ($). Round your answer to 3 decimal places. (e.g. 32.161)) If there is a 500-unit decrease in projected sales we would expect
the NPV to change by $ . (Do
not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g.
32.16))

The sensitivity of OCF to changes in the variable cost figure is $ . Therefore a $1 decrease in estimated variable costs results in a $ change in OCF. (Do not include the dollar signs ($). Negative amount
should be indicated by a minus sign. Round your answers to the nearest whole number. (e.g. 32))