(Solved): We are evaluating a project that costs $2,130,000, has a 8 -year life, and has no salvage value. As ...

We are evaluating a project that costs $\$2,130,000$, has a 8 -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 90,600 units per year. Price per unit is $\$38.85$, variable cost per unit is $\$23.95$, and fixed costs are $\$860,000$ per year. The tax rate is 25 percent, and we require a return of 11 percent on this project. a. Calculate the base-case operating cash flow and NPV. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.9., 32.16 . b. What is the sensitivity of NPV to changes in the sales figure? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.9.4 32.161. c. If there is a 450 -unit decrease in projected sales, how much would the NPV change? Note: $A$ negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16 . d. What is the sensitivity of OCF to changes in the variable cost figure? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. e. If there is a $\$1$ decrease in estimated variable costs, how much would the OCF change? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.