Question: A. $22 B. $25 C. $23 D. $24 E. $27 F. $26 A firm is considering the purchase of a fixed asset that costs $800.

A. $22

B. $25

C. $23

D. $24

E. $27

F. $26

A firm is considering the purchase of a fixed asset that costs $800. has a five-year life, and no salvage value The asset is depreciated straight line to zero over its lite. The firm projects the following price per unit 515. quantity - 50 units, variable cost per unit = 56 and fixed costs $30. The required return on the project Is 104 and the tax rate is 15%. Find the sensitivity of net present value to changes in the number of units cold, 522 525 523 524

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