$1.$ A project costs $$450,000.$ It has a $10-$year useful life and no salvage value. Depreciation is straight$-$line to zero over the life of the project. The tax rate is $34\%$ and the required return for the project is $14\%($assume no debt$).$ You have the following estimates for the base$-$case and you believe the estimates are accurate to $+/-15\%$:$$Unit sales: $2,000$Price$/$unit: $350$VC$/$unit: $230$FC$/$year: $50,000$

What is the VC$/$unit number you would use when determining the best$-$case scenario?

$2.$ A project costs $$450,000.$ It has a $10-$year useful life and no salvage value. Depreciation is straight$-$line to zero over the life of the project. The tax rate is $34\%$ and the required return for the project is $14\%($assume no debt$).$ You have the following estimates for the base$-$case and you believe the estimates are accurate to $+/-15\%$:$$Unit sales: $2,000$Price$/$unit: $350$VC$/$unit: $230$FC$/$year: $50,000$

What is the Unit sales number you would use when determining the worst$-$case scenario?$$

$3.$ A project costs $$450,000.$ It has a $10-$year useful life and no salvage value. Depreciation is straight$-$line to zero over the life of the project. The tax rate is $34\%$ and the required return for the project is $14\%($assume no debt$).$ You have the following estimates for the base$-$case and you believe the estimates are accurate to $+/-15\%$:$$Unit sales: $2,000$Price$/$unit: $350$VC$/$unit: $230$FC$/$year: $50,000$

Calculate the worst$-$case NPV$.$

$4.$ A project costs $$450,000.$ It has a $10-$year useful life and no salvage value. Depreciation is straight$-$line to zero over the life of the project. The tax rate is $34\%$ and the required return for the project is $14\%($assume no debt$).$ You have the following estimates for the base$-$case and you believe the estimates are accurate to $+/-15\%$:$$Unit sales: $2,000$Price$/$unit: $350$VC$/$unit: $230$FC$/$year: $50,000$

The base$-$case NPV is $283,907\mathrm{.}4714.$ Calculate the sensitivity of the project$$s NPV to changes in unit sales.$$

$5.$ A project costs $$450,000.$ It has a $10-$year useful life and no salvage value. Depreciation is straight$-$line to zero over the life of the project. The tax rate is $34\%$ and the required return for the project is $14\%($assume no debt$).$ You have the following estimates for the base$-$case and you believe the estimates are accurate to $+/-15\%$:$$Unit sales: $2,000$Price$/$unit: $350$VC$/$unit: $230$FC$/$year: $50,000$

Using your unrounded answer in question #$3,$ what would be the project$$s NPV if you were able to sell $200$ fewer units?$$

$6.$ A project costs $$450,000.$ It has a $10-$year useful life and no salvage value. Depreciation is straight$-$line to zero over the life of the project. The tax rate is $34\%$ and the required return for the project is $14\%($assume no debt$).$ You have the following estimates for the base$-$case and you believe the estimates are accurate to $+/-15\%$:$$Unit sales: $2,000$Price$/$unit: $350$VC$/$unit: $230$FC$/$year: $50,000$

The base$-$case NPV is $283,907\mathrm{.}4714.$ Calculate the sensitivity of the project$$s NPV to changes in VC$/$unit$.$

$7.$ A project costs $$450,000.$ It has a $10-$year useful life and no salvage value. Depreciation is straight$-$line to zero over the life of the project. The tax rate is $34\%$ and the required return for the project is $14\%($assume no debt$).$ You have the following estimates for the base$-$case and you believe the estimates are accurate to $+/-15\%$:$$Unit sales: $2,000$Price$/$unit: $350$VC$/$unit: $230$FC$/$year: $50,000$

Using your unrounded answer in question #$5,$ what would be the project$$s NPV if VC$/$unit is $$255$ instead of $$230?$