8.2 Pacific Products Inc. is considering the introduction of a new product, Alpha. The firm has gathered the following information relevant to the project: Initial fixed capital outlay: $120,000 Initial working capital outlay: $9,800 Life of the project: 5 years Capital recovery at project end: fixed $18,000; working $7,200 Sales units forecast: 50,000 units in year 1, growing at 6% per annum thereafter Unit selling price: $2.75 Unit production cost: $1.28 Annual fixed overhead cost: $35,000 Annual tax rate of depreciation claimable: 20% per annum Annual income tax rate: 38% Required rate of return: 9% per annum For these data: (a) Calculate an NPV for the project under the given base-case scenario. (b) Perform sensitivity analyses on the following variables: initial fixed capital outlay, unit selling price, annual sales growth rate, unit production cost. (c) By the use of Data Tables and appropriate graphs, calculate the break-even points for unit production cost and the required rate of return. (d) Advise management of the analyses regarding the new product Alpha, and make appropriate investment recommendations