A four year project has an initial investment in plant and equipment of $520,000, which will be depreciated on a straight line basis over the four year life of the project. The company will sell 80,000 units at a price of $74 each and a variable cost of $36. Fixed costs are $2,100,000, the tax rate is 35% and the cost of capital is 16%. What is the NPV of this project? How sensitive is NPV to changes in quantity sold? What does this number mean?

Equipment	$ 520,000
Project life (years)	4
Sales (units)	80,000
Price/unit	$ 74
Variable cost/unit	$ 36
Fixed costs	$ 2,100,000
Tax rate	35%
Required return	16%

Please post answers with all work and the formulas in each cell.