I have posted this question twice, but i didn't get the correct answer yet, please read the question carefully before answering. I do not need an answer for the 3.1 and I need answer for 3.2 which is NPV break-even analysis. When I posted the question before i got an answer only to the first part please provide the answer to the 3.2 only I have highlighted it at the end.

Using Data/ What -If Analysis/Goal Seek/ Set cell: method to find the Break even sales units.

Case Study: Assume that your group is working in Financial Department of a company that produces health care tools and equipment. Your company is considering two potential projects as follow:

Project 1: launching a new product of hearing aids. Your supplier offers you two options that have different cash outlay and generate different revenue but same useful life of 5 years. The table below shows the estimated data available to the company’s Management:

	Option A	Option B
Initial Investment	1,205,000	1,315,000
Annual Cash Flow
Year 1	290,000	315,000
Year 2	320,000	345,000
Year 3	360,000	356,000
Year 4	375,000	402,000
Year 5	480,000	540,000

Project 2: Buying a new assembly for wheelchair production. Your companies are offered two options that will generate the same revenue for the company each year. The table below shows the initial and annual costs for each option.

	Option A	Option B
Initial Investment	1,550,000	1,750,000
The annual cost, including fuel, maintaining, and other relevant expenses
Year 1	42,000	35,000
Year 2	42,000	35,000
Year 3	42,000	35,000
Year 3	42,000	35,000
Year 5		35,000

3.1. Capital Budgeting Decision Making (7 marks) You are required to write a short report to the company’s Management: 1) To select a relevant method among five investment criteria of Net Present Value (NPV), Equivalent Annual Cost (EAC), profitability Index (PI), Internal Rate of Return (IRR), Simple Payback Period, and Discounted Payback Period for each project, given the market required rate of return for all project is 9.5% and the company’s benchmark of payback is maximum 3 years. Your recommendation must include your justification on why you choose the specific method based on its pros and cons compared to other methods. (Note: you cannot use the same method for both projects) (2 marks)

2) To perform the selected method and present the outcome of your project evaluation and recommend the option A or B should the company choose for each project. Your justification must include calculation steps and numerical outcomes. (5 marks)

3.2 Assume that for Project 2, the company finally chose Option B. It expects to sell 8,500 wheelchairs for an average price of $750 per unit. The assembly in Option B has a residual value of $350 000 at the end of the project. The company will need to add $ 850 000 in working capital which is expected to be fully retrieved at the end of the project.

Other information is available below:

Depreciation method: straight line

Variable cost per unit: $120

Cash fixed costs per year: $35,000 of annual cost for assembly operation + $20,000 other fixed cost

Corporate marginal tax: 30%

Upon the forecast of unexpected economic conditions that may be caused by the current breakout of corona virus, the company management requires your Team to prepare a risk analysis for the case where the unit price of this product decreases by 25%.

Required: perform an NPV break-even analysis to identify break-even sales of the project when the unit price decreases by 25%. Conclusion Summarize / Reflection the outcomes