Ficase Show All work. 1. Sensitivity Analysis Consider the project where the initial cost is $200,000, and the project has a 5-year life. There is no salvage. Depreciation is straight-line (Depreciation - 200,000/5 - 40,000) Unit Sales - 6000, Price per unit - $80 (Sales - 6,000 x 80) Variable cost per unit - $60 (Variable Costs = 6,000 x 60) The required return is 12%, and the tax rate is 21% What are the cash flow each year, NPV and IRR in each case, if we changed fixed costs only? Scenario Fixed Costs Base case S50,000 Worst case 55.000 Best case 45,000 Show all work as follows: 1. Complete the income statement for each case: Base Worst Best $480,000 $480,000 S480,000 Sales Variable Costs Fixed Costs Depreciation EBIT Taxes (21%) Net Income 360,000 55,000 40.000 360.000 45,000 40,000 360,000 50,000 40,000 30,000 6,300 23,700 e to search 0