Problem $10-6$ Sensitivity analysis

Emperor's Clothes Fashions can invest $$5\mathrm{.}36$ million in a new plant for producing invisible makeup. The plant has an expected life of five years, and expected sales are $6\mathrm{.}36$ million jars of makeup a year. Fixed costs are $$2\mathrm{.}90$ million a year, and variable costs are $$1\mathrm{.}90$ per jar. The product will be priced at $$2\mathrm{.}90$ per jar. The plant will be depreciated straight$-$line over five years to a salvage value of zero. The opportunity cost of capital is $10\%,$ and the tax rate is $40\%.$

a$.$ What is project NPV under these base$-$case assumptions?

Note: Do not round intermediate calculations. Enter your answer in thousands not in millions and round your answer to the nearest whole dollar amount.

b$.$ What is NPV if variable costs turn out to be $$210$ per jar?

Note: Do not round intermediate calculations. Enter your answer in thousands not in millions and round your answer to the nearest whole dollar amount.

c$.$ What is NPV if fixed costs turn out to be $$240$ million per year?

Note: Do not round intermediate calculations. Enter your answer in thousands not in millions and round your answer to the nearest whole dollar amount.

d$.$ At what price per jar would project NPV equal zero?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.