5. An investment of $40,000 today is expected to give rise to annual contribution of $25,000. This is based on selling one product, a volume of 10,000 units, selling price of $12.50 and variable cost of $10. Annual fixed cost of $10,000 will be incurred for the next four years, the discount rate is 10% Required: (a) Calculate the NPV of this investment, (b) Calculate the sensitivity of your calculation to the following: Initial investment Selling price per unit Variable cost per unit Sales volume Fixed costs Discount rate i ii. iii. iv. V vi