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Emperor s Clothes Fashions can invest $ 6 million in a new plant for producing invisible makeup. The plant has an expected life of 5

Emperors Clothes Fashions can invest $6 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 7 million jars of makeup a year. Fixed costs are $2.5 million a year, and variable costs are $2.60 per jar. The product will be priced at $3.40 per jar. The plant will be depreciated straight-line over 5 years to a salvage value of zero. The opportunity cost of capital is 10%, and the tax rate is 30%.
What is project NPV under these base-case assumptions?
Note: Do not round intermediate calculations. Enter your answer in millions, rounded to 2 decimal places.
What is NPV if variable costs turn out to be $2.70 per jar?
Note: Do not round intermediate calculations. Enter your answer in millions, rounded to 2 decimal places.
What is NPV if fixed costs turn out to be $2.2 million per year?
Note: Do not round intermediate calculations. Enter your answer in millions, rounded to 2 decimal places.
At what price per jar would the project's NPV equal zero?
Note: Enter your answer in dollars, not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.

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