Question: Perform a sensitivity analysis on the projects data, varying the unit price and the demand from their expected value by 10%, 20%, and 30%. Summarize
Perform a sensitivity analysis on the projects data, varying the unit price and the demand from their expected value by 10%, 20%, and 30%. Summarize your results in a table and a sensitivity graph. Which of the two is the NPW more sensitive to changes in?

You are considering an investment project with the following financial information: (a) Required investment = $500,000 (b) Project life = 5 years (c) Salvage value = $50,000 (d) Depreciation method = straight-line depreciation (no half-year convention) (e) Unit price = $40 (1) Unit variable cost = $18 (g) Fixed annual cost = $230,000 (h) Annual sales volume = 100.000 units (i) Tax rate = 35% 6) MARR= 15% Suppose the company is most concerned about the impact of its price estimate on the project's rate of relurn. How would you address this concern
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