while evaluating a project that costs $2.58 million having 6 years life has no salvage value under straight line depreciation method. Estimated sales at $3150000 per year, price per unit is $45, variable cost per unit is $12.5 and fixed cost $37500 per year. The tax rate and the required rate of return is 18% and 11% respectively.

1. Find the base cash flow and Npv (show steps of calcuation)

2. What is the sensitivity of NPV to change in sales figure (show steps of calculation)

3. Find the NPV change for a 400 unit decrease of a projected sales ( show steps of calculation)