that you can use it for what-if analysis. Base case Inputs: 4-year life of the project $15/unit Price of the product $5/unit Cost of products $1000/year operating costs 1000 units First-year production 10% Increase in production each year $20,000 Initial investment depreciated with MACRS 3 year recovery 28% tax rate. Answer the following question for "what if analysis": What is the IRR for the Base case? What is the IRR if the volume produced does not increase by 10%/year, but only increased 1%/yr? What is the IRR if the price is only $13/unit? What is the IRR if the tax rate increases to 49%? What is the IRR if the initial investment is $22,000?

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