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