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I need help e. The Marketing Vice President would like some sensitivity analysis done. He asks, What would be the NPV of the project if

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e. The Marketing Vice President would like some sensitivity analysis done. He asks, "What would be the NPV of the project if annual uni sales vary from 400,000, 450,000, ..., 900,000 and if the unit price per bar varies from $1.20, $1.30, ..., $1.70?" Show the Data Table that answers his question. 10. (Cash-flow analysis) The Less Is More" company manufactures swimsuits. The company is considering expanding to the bathrobe market. The proposed investment plan includes: Purchase of a new machine: The cost of the machine is $150,000, and its expected life span is 5 years. The machine will be depreci- ated to zero salvage value, but the chief economist of the company estimates that it can be sold for $20,000 at the end of 5 years. Advertising campaign: The head of the marketing department esti- mates that the campaign will cost $80,000 annually. Fixed costs: Incremental fixed costs of the new department will be $40,000 annually. Variable costs: First-year variable costs are estimated at $30 per bathrobe, but due to the expected increase in labor costs, they are expected to rise at 5% per year. Price per bathrobe: Each of the bathrobes will be sold at a price of $45 at the first year. The company estimates that it can raise the price of the bathrobes by 10% in each of the following years. The "Less Is More" discount rate is 10%, and the corporate tax rate is 36%. a. What is the break-even point of the bathrobe department (what is the minimal number of units it needs to sell so the expansion is profitable)? b. Plot a graph in which the NPV is the dependent variable of the annual production. (Cash-flow analysis, replacing equipment) The "Car Clean" company oper- ales a car wash business. The company's current cleaning machine was ught 2 years ago at the price of $60,000. The life span of this machine is lunun and the current market value of

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