Framers Studio is considering the following project. Calculate the sensitivity in the net present value of the project to the change in the number of units sold.

Life of project	20 years
Initial investment	$500,000
Number of units	2,500 units
Price per unit	$120.00
Variable cost per unit	$60.00
Annual fixed costs	$65,000
Tax rate	21%
Required rate of return	10%

Multiple Choice

• $382

• $404

• $251

• $521

• $621