# We are evaluating a project that costs \$1,080,000, has aten-year life, and has no salvage value. Ass

We are evaluating a project that costs \$1,080,000, has aten-year life, and has no salvage value. Assume that depreciationis straight-line to zero over the life of the project. Sales areprojected at 52,000 units per year. Price per unit is \$50, variablecost per unit is \$30, and fixed costs are \$756,000 per year. Thetax rate is 35 percent, and we require a return of 15 percent onthis project.
a. Calculate the accounting break-even point.
(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.) Break-evenpoint            units
b-1 Calculate the base-case cash flow and NPV.
(Do not round intermediate calculations and round your NPVanswer to 2 decimal places, e.g., 32.16.)

b-2
What is the sensitivity of NPV to changes in the salesfigure?
(Do not round intermediate calculations and roundyour answer to 3 decimal places, e.g., 32.161.) ΔNPV/ΔQ          \$
b-3 Calculate the change in NPV if sales were todrop by 500 units.
(Enter your answer as a positive number.Do not round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.) NPV would  (Click toselect)  decrease  increase  by\$
c. What is the sensitivity of OCF to changes inthe variable cost figure?
(A negative answer should beindicated by a minus sign. Do not round intermediate calculationsand round your answer to the nearest whole number, e.g.,32.) ΔOCF/ΔVC          \$ Attached