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Consider a three year project with an initial fixed asset investment of $337292, straight-line depreciation to zero over the lifetime of the project and no

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Consider a three year project with an initial fixed asset investment of $337292, straight-line depreciation to zero over the lifetime of the project and no salvage value. Each item will be sold for a $82 price. Variable costs are $12 for each item, and an annual fixed cost of $165859 will be incurred. The current estimate of units sold per year is 20561 units. The company has a tax rate of 32% and the discount rate is 10%. How sensitive is net present value to increase in quantity sold? That is, how much will NPV change for a 1,000 increase in quantity sold? Select one: a. $109127.19 b. $95485.95 c. $59024.00 d. $118374.16 e. $104732.92

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