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Given the information below, calculate the NPV's (using the NPV Excel formula) for the following scenarios: Part a Base NPV Part b Unit price goes
Given the information below, calculate the NPV's (using the NPV Excel formula) for the following scenarios: Part a Base NPV Part b Unit price goes up by 10% Part c Variable price goes up by 10% Part d Unit sales goes down by 10% Part e Determine which scenerio is the most sensitive and why? Base information remains the same between scenarios except for the variables in parts b,c, and d. Base Info Unit price $ 125 Variable cost per unit $ 75 Fixed Costs $ 250,000 Expected Sales (units) Required rate of return Tax Rate Cost of machine $ Salvage Value $ Life Working Capital Increase $ 10,000 units 12% 21% 1,000,000 25,000.00 10 Years
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