RSM Co is considering a project which will require the purchase of $2.7 million in new equipment. The equipment will be depreciated straight-line to a book value of $1 million over the 5-year life of the project. Annual sales from this project are estimated at $2,950,000. The variable cost is 40% of the annual sales and there is an annual fixed cost of $200,000. Sway's Back Store will sell the equipment at the end of the project for 30% of its original cost. New net working capital equal to 15% of sales will be required to support the project. All of the new net working capital will be recouped at the end of the project. The firms WACC is 12% per year. The tax rate is 40%.

If annual sales is changed to $1,800,000, what is the projects NPV. assuming every else the same? What is the sensitivity of NPV to annual sales?

Please answer without using Excel. Thank you.