Question 4 (25 marks) ABC Company is considering a project that has the following information: Initial investment N$3 000 000 Life span 5 years Depreciation Straight line Sales volume per year 240 000 units Selling price per unit N$40 Fixed costs excluding depreciation per year N$300 000 Variable cost per unit N$30 Scrap value Nil Cost of capital 11% Taxation 28% Sub- Total Mark Total Required: Calculate the sensitivity of the investment to the following: i) Selling price Sales volume Variable cost iv) Fixed costs. Cost of capital vi) To which of the variables is the project more sensitive to and why? Total 25 25 20 Total assignment 2: 90 marks