Use the data from Starbuck's and the instructions in part 2 to answer this. If we increase the number of units sold by 10%, what is the NPV?

L. This is for questions 1- 19 Starbucks is discussing a new project amongst their managernent team. They are considering a project where they will sell to the public the coffee makers that they use in their stores. This way customers can brew their Starbucks coffees at home and not have to worry about going inside the restaurant and being exposed to other people. The chief marketing officer (CMO) estimates that they will sell 5,000 units a year for 5 years at a price of $125 each. The chief operations officer (C00) estimates that the variable costs to build these will be 65% of revenue. The COO says the company will need to buy an assembly line to make these. The assembly line costs $550,000 and has a shipping cost of $30,000. The COO adds that they will need to purchase an additional $50,000 in inventory and accounts payable will increase by $17.000. Once the project ends, they will no longer need additional inventory and will pay the accounts payable balance. The chief financial officer (CFO) The CFO says to use the MACRS 3 year class for depreciation. (These are the same rates as used in the slides.) He estimates that the assembly line will have a salvage value of $40,000. He notes that Starbuck's tax rate is 28% and that the normal WACC is 8.5% The CMO notes that they have done an extensive marketing survey and many Starbucks customers are scared to go to a store in today's environment and would be happy to purchase their own equipment. This research is already paid for and cost $55.000. 1 IL This is for questions 20-26 Perform a sensitivity analysis changing the number of units sold, the WACC, and the variable costs using +10% from normal and -10% from normal. Show the different NPV's. You should have 9 NPVs, (the 3 hase case NPVs will remain the same, and there will be 6 new NPVs)