Question: 2. Perform sensitivity analysis on the following project by first finding the NPV for the base case, then for a 10% decline in quantity sold

 2. Perform sensitivity analysis on the following project by first finding

2. Perform sensitivity analysis on the following project by first finding the NPV for the base case, then for a 10% decline in quantity sold and a 10% increase in quantity sold Investment = $300,000 Straight line depreciation over 2 years No Salvage Value quantity sold per year = 20,000 Price per unit = $45 at Time 0 2% inflation rate each year of the two years Operating Cost = $24 per unit (all variable) at Time 0 1% inflation rate per year Tax rate 25% cost of capital 9% Project will have a 2 year life

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