E) We are evaluating a project that costs $750,000 has an eight-year life and has no salvage value. Assume that depreciation is straight line to zero over the life of the project. Sales are projected at 80,000 units per year. Price per unit is S43, variable cost per unit is S29 and fixed costs are S750,000 per year. The tax rate is 35 per cent. The rate of return required is 15%. Perform sensitivity analysis of Operating cash flow to changes in variable costs. The variable cost is expected to change by 1%. What is the effect on NPV? 5 Marks