Jabal Shams Cement SAOG is planning to launch a new product. A market survey was recently conducted to find out the likely demand for the product and the study concluded that the demand for the new product would last for five years. Company expects to sell 12,000 units at OMR14 per unit. Based on the market survey information, the following summary is prepared:

Year	Cash out flow(OMR)	Variable Cost(OMR)	Cash inflows from sales(OMR)	Net cash inflows(OMR)
0	425,000
1		30,000	168,000	138,000
2		25,000	168,000	143,000
3		40,000	168,000	128,000
4		35,000	168,000	133,000
5		25,000	168,000	143,000

Due to volatile market, the company is concerned about the future demand for its new product in the market. Company management wants to know the sensitivity of its new project to various variables such as initial investment, sales volume, selling price, variable cost and cost of capital. Muscat cement SAOG has a cost of capital of 10.25%.

Required:

1. Measure the sensitivity of the project to changes in the following variables based on NPV and explain the most sensitive variable:

1. Variable cost
2. Sales volume
3. Selling price
4. Cost of capital