Question: Please show work in excel You are considering a new product launch. The project will cost $925,000, have a six-year life, and have no salvage

Please show work in excel

You are considering a new product launch. The project will cost $925,000, have a six-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected to be $1,800,000; variable cost per unit will be 60% of sales; and fixed costs will be $610,000 per year. The required return on the project is 15 percent, and the relevant tax rate is 35 percent.

What is the sensitivity of NPV to one dollar changes in variable cost?

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