Conduct a sensitivity analysis to determine the sensitivity of NPV to changes in the sales price, variable costs per unit, and number of units sold. Set these variables values at 10% and 20% above and below their base-case values. Include a graph in your analysis. Use the following information below & Fill in all the blanks:
									Equipment cost			$10,000
Net operating working capital/Sales			10%
First year sales (in units)			1,000
Sales price per unit			$24.00
Variable cost per unit (excl. depr.)			$17.50
Nonvariable costs (excl. depr.)			$1,000
Market value of equipment at Year 4			$500
Tax rate			40%
WACC			10%
Inflation in prices and costs			3.0%
Estimated salvage value at year 4			$500
			Years	0	1	2	3	4
Net Cash Flow (Time line of cash flows)				-$13,000	$4,100	$4,679	$4,269	$8,058
Net Present Value (at 10%) =			$ 3,305.28
% Deviation	SALES PRICE
from	Base	NPV
Base Case	$ 24.00
-20%	$ 19.20
-10%	$ 21.60
0%	$ 24.00	$3,305
10%	$ 26.40
20%	$ 28.80
% Deviation	VARIABLE COST
from	Base	NPV
Base Case	$17.50	$3,305
-20%	$14.00
-10%	$15.75
0%	$17.50
10%	$19.25
20%	$21.00
% Deviation	1st YEAR UNIT SALES
from	Base	NPV
Base Case	1,000	$3,305
-20%	800
-10%	900
0%	1000	$3,305
10%	1100
20%	1200