Metropolitan Co$.($MC$)$ is considering adding a new product line to its portfolio. MC has already paid $$15,000$ for a location feasibility study that recommended install the new plant within the current unused space in MC$$s main facilities. The machinery will have an invoice price of $$600,000$ but it requires another $$60,000$ to be installed. The machinery has an economic expected life of $4$ years but for depreciation purposes it will fall in the MACRS $3-$year class. An expected $$50,000$ salvage value has to be recognized. The new product line would generate incremental sales of $2,000$ units per year for the next $4$ years with an incremental cost of $$180$ per unit in the first year, excluding depreciation, and can be sold for $$340.$ The sales price and costs are expected to increase by $3\%$ per year due to inflation. To manage the new operation the MC$$s net operating working capital would have to increase by an amount equal to $10\%$ of sales revenues. Firm$$s tax rate is $35\%$ and its overall weighted average cost of capital is $12\%.$

Perform a sensitivity analysis on the unit sales, costs $($other than depreciation$),$ and cost of capital. Assume that each of these variables can vary from its base case by $+$ or $10,20,$ and $30\%.$ Include a Sensitivity diagram and discuss the results.