Question: Problem 10-3 Sensitivity Analysis (LO2) A project currently generates sales of $7.3 million, variable costs equal to 37% of sales and fixed costs of $2.5

Problem 10-3 Sensitivity Analysis (LO2) A project currently generates sales of $7.3 million, variable costs equal to 37% of sales and fixed costs of $2.5 million. The firm's tax rate is 35%. What are the effects of the following changes on after-tax profits and cash flows? a. Sales increase from $7.3 million to $8.3 million. What are the effects on after-tax profits and cash flows? (Round your answers to 3 decimal places. Enter your answers in millions of dollars.) After-tax profits (Click to select) by s million After-tax cash flow (Click to select) by million b. Variable costs increase to 50% of sales. What are the effects on after-tax profits and cash flows? (Round your answers to 3 decimal places. Enter your answers in millions of dollars.) After-tax profits (Click to select) by $ million After-tax cash flow (Click to select) by million

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