Problem $10-8$ Sensitivity Analysis $($LO$3)$

Emperor's Clothes Fashions can Invest $$6$ million In a new plant for producing Invisible makeup. The plant has an expected life of $5$

years, and expected sales are $7$ million Jars of makeup a year. Fixed costs are $$2\mathrm{.}6$ million a year, and varlable costs are $$1\mathrm{.}40$ per jar.

The product will be priced at $$270$ per Jar. The plant will be depreclated straight$-$line over $5$ years to a salvage value of zero. The

opportunity cost of capltal is $12\%,$ and the tax rate is $30\%.$

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

Note: Do not round Intermedlate calculations. Enter your answer In millilons, rounded to $2$ decimal places.

b$.$ What is NPV If varlable costs turn out to be $$1\mathrm{.}60$ per Jar?

Note: Do not round Intermedlate calculations. Enter your answer In millilons, rounded to $2$ decimal places.

c$.$ What is NPV If fixed costs turn out to be $$2\mathrm{.}4$ million per year?

Note: Do not round Intermedlate calculations. Enter your answer In millilons, rounded to $2$ decimal places.

d$.$ At what price per Jar would the project's NPV equal zero?

Note: Enter your answer In dollars, not In millions. Do not round Intermedlate calculations. Round your answer to $2$ decimal

places.