Question: consider a 5 year project with an initial fixed asset investment of $324,000 straight line depreciation to zero over project life a zero salvage value

consider a 5 year project with an initial fixed asset investment of $324,000 straight line depreciation to zero over project life a zero salvage value a selling price of $34 variable cost of $17 fixed cost of $189,700 a sale quantity of 94,000 unit and tax of 21 percent the required rte of return on this project is 12%. calculate the sensitivity of NPV to changes in the sales price by $1. interpret your result

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