Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production.

- Initial investment of $5,600,000 in threading equipment

- the project will last for 6 years.

-The accounting department estimates that annual fixed costs will be $600,000

-variable costs should be $250 per ton.

- depreciate initial investment straight-line to 0 over 6 years with salvage value of $450,000

-contract at selling price of $340 per ton

- the engineering department estimates you will need an initial net working capital investment of $560,000.

- return of 13% and marginal tax rate of 24%

(A)What about the sensitivity of NPV to changes in quantity supplied?