A four year project has an initial investment in plant and equipment of $1.55 million, which will be depreciated on a straight line basis over the four year life of the project. The company will sell 75,000 units at a price of $81 each and a variable cost of $41. Fixed costs are $2.2 million, the tax rate is 21% and the cost of capital is 13%. How sensitive is NPV to changes variable cost per unit? What does this number mean? Equipment s 1,550,000 Project life (years) 5 Sales (units) 75,000 Price/unit $ 81 Variable cost/unit $ 41 Fixed costs $ 2,200,000 Tax rate 21% Required return 13% Points off