Emperors Clothes Fashions can invest $5 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 6 million jars of makeup a year. Fixed costs are $2.8 million a year, and variable costs are $1.40 per jar. The product will be priced at $3.00 per jar. The plant will be depreciated straight-line over 5 years to a salvage value of zero. The opportunity cost of capital is 14%, and the tax rate is 30%.

A. what is project NPV under these base-case assumptions B. What is NPV if variable costs turn out to be $2.10 per jar c.What is NPV if fixed costs turn out to be $2.6 million per year? d. At what price per jar would project NPV equal zero?