Bourque Enterprise is considering a new four$-$year project.

The company bought some land a year ago for $$200,000$ in anticipation of using it as a manufacturing production site. Based on a recent appraisal, the company believes it could sell the land for $$235,000$ on an after$-$tax basis. In four years, the land could be sold for $$250,000$ after taxes.

The company projects unit sales as follows at a price of $$100$ per unit.

Year Unit sales

$19,000$

$29,000$

$37,000$

$43,000$

Total fixed costs are $$125,000$ per year, and the variable product costs will be $25$ percent of sales. The plant and equipments required for the project will cost $$510,000.$ A five$-$year MACRS depreciation is used. At the end of the project, these fixed assets can be sold for $$55,000$ before tax.

The project will require net operating working capital equal to $20$ percent of sales that must be accumulated in the year prior to sales, to support inventory and the credit sales to customers.

The tax rate is $22$ percent. The required return is $11$ percent. $5.$ Decision rules

Calculate the NPV$,$ IRR and payback years.

NPV $

$499006$

IRR

$34\mathrm{.}59$

$\%$

Payback years

$1\mathrm{.}94$

years. Sensitivity analysis

What is the NPV sensitivity to the unit price $($P$)?$

NPV sensitivity to P: $ I need help on how NPV$,$ IRR, Payback years, and NPV sensitivity to P was calculated. Please show your work. Thanks!