(Solved): excel A2 \( \quad \) f \( \quad f_{x} \) We are evaluating a project that costs \( \$ 845,000 \), ha ...

A2 \( \quad \) f \( \quad f_{x} \) We are evaluating a project that costs \( \$ 845,000 \), has an eight-year life, and has no salvat We are evaluating a project that costs \( \$ 845,000 \), has an eight-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 51,000 units per year. Price per unit is \( \$ 53 \), variable cost per unit is \( \$ 27 \), and fixed costs are \( \$ 950,000 \) per year. The tax rate is 22 percent, and we require a return of 10 percent on this project. a. Calculate the accounting break-even point. What is the degree of operating leverage at the accounting break-even point? b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the quantity: sold? Explain what your answer tells you about a 500-unit decrease in the quantity sold. c. What is the sensitivity of OCF to changes in the variable cost figure? Explain what your an swer tells 2 you about a s1 decrease in estimated yariable costs. \( \begin{array}{ll}2 & 2 \\ 4 & \text { input area: } \\ 5 & \end{array} \)