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 million a year, and variable costs are $1 per jar The product will be priced at $2 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 40 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 $1 20 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 $1 5 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 Emperor's 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 million a year, and variable costs are $1 per jar The product will be priced at $2 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 40 a 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 b What is NPV if variable costs turn out to be $1 20 per jar Note Do not round intermediate calculations Enter your answer in millions, rounded to 2 decimal places c What is NPV if fixed costs turn out to be $1 5 million per year Note Do not round intermediate calculations Enter your answer in millions, rounded to 2 decimal places d 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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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

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 million a year, and variable costs are $1 per jar. The product will be priced at $2 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 40%.

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 $1.20 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 $1.5 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.

Emperor's 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 million a year, and variable costs are $1 per jar. The product will be priced at $2 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 40%. a. 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. b. What is NPV if variable costs turn out to be $1.20 per jar? Note: Do not round intermediate calculations. Enter your answer in millions, rounded to 2 decimal places. c. What is NPV if fixed costs turn out to be $1.5 million per year? Note: Do not round intermediate calculations. Enter your answer in millions, rounded to 2 decimal places. d. 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