Question: We are evaluating a project that costs $966,000, has a life of 12 years, and has no salvage value. Assume that depreciation is straight-line to

We are evaluating a project that costs $966,000, has a life of 12 years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 91,000 units per year. Price per unit is $42, variable cost per unit is $29, and fixed costs are $975,660 per year. The tax rate is 24 percent, and we require a return of 13 percent on this project. 2c. What is the sensitivity of NPV to changes in the quantity sold
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