Question: While evaluating a project that costs $2.58 million having 6 years life has no salvage value . Estimated sales at $3,150000 per year price per

While evaluating a project that costs $2.58 million having 6 years life has no salvage value . Estimated sales at $3,150000 per year price per unit is $45, variable cost per unit is $12.5 and fixed cost $37,500 per year. The tax rate and the required rate of return are 18% and 11%, respectively. Show the steps of computation . 1. Find the base cash flow and base NPV ( 3 points ) 2. What is the sensitivity of NPV to change is sales figure ( 2 points ) 3. Find the NPV change for a 400 unit decrease of projected

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