11. The project under consideration costs $400,000, has five-year life, and has no salvage value. Depreciation is straight-line to zero. The required return is 12%, and the tax rate is 34%. In addition, we have the following information about the various variables that will determine the future cash flows: Pessimistic Case Base Case Optimistic Case Unit sales 9,500 11,000 12,500 Price per unit $88 $92 $100 Variable costs per unit $68 $64 $60 Fixed costs per year $55,000 $50,000 $45,000 a) Calculate the base-case cash flows and then calculate the base-case NPV. b) Next, to calculate how sensitive NPV is to changes in variable cost per unit, you want to calculate the cash flows and NPV for pessimistic values of the variable cost (to keep it simple, you do not need to do the calculations for the optimistic case). c) Comment on how sensitive is the base-case NPV value (from part a) to variable cost