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Consider a project that requires an initial cost of $524,000, a required return rate of 15%, and has a 10-year project life. The company follows

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Consider a project that requires an initial cost of $524,000, a required return rate of 15%, and has a 10-year project life. The company follows a straight-line depreciation approach. The fixed cost is $278.700 and the variable cost is $24 per unit. The selling price is $55 per unit and the tax rate is 34 percent. The company expects that it will be able to sell 105,000 units. As a manager of the project you want to examine the sensitivity of the NPV to the varying selling prices. Create a graph to show the sensitivity with #10%, +20%, 430% changes in selling price

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