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Directions: Select the BEST answer for each question and mark it an the Scantron Use this information to answer the next three questions. Assume a cast of copital of 10% Aria Aquatics projections for a new product are as follows: The equipment needed to begin production nas an ins4aneo cont or $10.x mumon and will be straight-line depreciated for three vears. The tax rate is 213 and the required return is 100 . There are no project cash fiows beyond the end of year 3 . 1. Under the base case, what is the NPV break-even quantity of sales? a. 73,104 b. 69,121 c. 57,086 d. 55,493 e. 75,589 2. What is the project's sensitivity to the assumption of unit cost? a. NPV may be as high as $21.83mm or as low as $4.10mm b. NPV may be as high as $14.15mm or as low as $2.29mm c. NPV may be as high as $25.62mm or as low as $5.46mm d. NPV may be as high as $7.94mm or as low as $2.87mm e. NPV may be as high as $8.67mm or as low as $0.45mm 3. What are the project's best-and worst-case scenarios? a. NPV may be as high as $7.94mm or as low as $1.60mm b. NPV may be as high as $16.26mm or as low as $7.01mm c. NPV may be as high as $14.15mm or as low as $4.50mm d. NPV may be as high as $31.56mm or as low a5 $2.63mm e. NPV may be as high as $8.67mm or as low as $7.78mm Directions: Select the BEST answer for each question and mark it an the Scantron Use this information to answer the next three questions. Assume a cast of copital of 10% Aria Aquatics projections for a new product are as follows: The equipment needed to begin production nas an ins4aneo cont or $10.x mumon and will be straight-line depreciated for three vears. The tax rate is 213 and the required return is 100 . There are no project cash fiows beyond the end of year 3 . 1. Under the base case, what is the NPV break-even quantity of sales? a. 73,104 b. 69,121 c. 57,086 d. 55,493 e. 75,589 2. What is the project's sensitivity to the assumption of unit cost? a. NPV may be as high as $21.83mm or as low as $4.10mm b. NPV may be as high as $14.15mm or as low as $2.29mm c. NPV may be as high as $25.62mm or as low as $5.46mm d. NPV may be as high as $7.94mm or as low as $2.87mm e. NPV may be as high as $8.67mm or as low as $0.45mm 3. What are the project's best-and worst-case scenarios? a. NPV may be as high as $7.94mm or as low as $1.60mm b. NPV may be as high as $16.26mm or as low as $7.01mm c. NPV may be as high as $14.15mm or as low as $4.50mm d. NPV may be as high as $31.56mm or as low a5 $2.63mm e. NPV may be as high as $8.67mm or as low as $7.78mm