Question: A project costs $ 2 . 4 3 million and has no salvage value. Depreciation is straight - line to zero over the five -

A project costs $2.43 million and has no salvage value. Depreciation is straight-line to zero
over the five-year life of the project. Sales are projected at 64,000 units per year, price per unit
is $73.29, variable cost per unit is $42.93, and fixed costs are $623,000 per year. The tax rate is
21 percent, and the required rate of return is 11 percent. What is the sensitivity of NPV to a
100-unit increase in the sales figure? Show how to do it on the BA Il plus
 A project costs $2.43 million and has no salvage value. Depreciation

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