Question: We are evaluating a project that costs $837519, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over

We are evaluating a project that costs $837519, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 57519 units per year. Price per unit is $40, variable cost per unit is $18, and fixed costs are $424660 per year. The tax rate is 35%, and we require a return of 20% on this project.

In percentage terms, what is the sensitivity of NPV to changes in the units sold projection?The answer is 2.25 Pleased show all work as I am trying to figure out where I went wrong in my formulas

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