1.

Aria Aquatics projections for a new product are as follows: depreciated for three to vegin production has an installed cost of $15 million and will be straight-line required return is 6%. There are no prosts will be $2 million each year. The tax rate is 21% and the required return is 16%. There are no project cash flows beyond the end of year 3 . 1. What is the project's sensitivity to the assumption of unit cost? a. NPV may be as high as $14.15mm or as low as $8.12mm b. NPV may be as high as $12.19mm or as low as $5.32mm c. NPV may be as high as $8.67mm or as low as $1.55mm d. NPV may be as high as $7.94mm or as low as $2.62mm e. NPV may be as high as $14.78mm or as low as $7.13