Problem 10-8 Sensitivity Analysis (LO3) Emperor's Clothes Fashions can Invest $6 million in a new plant for producing Invisible makeup. The plant has an expected life of 5 years, and expected sales are 7 million jars of makeup a year. Fixed costs are $2.6 million a year, and variable costs are $1.40 per jar. The product will be priced at $2.70 per jar. The plant will be depreciated straight-line over 5 years to a salvage value of zero. The opportunity cost of capital is 12%, and the tax rate is 30%. a. What is project NPV under these base-case assumptions? Note: Do not round Intermediate calculations. Enter your answer in millions, rounded to 2 decimal places. b. What Is NPV if variable costs turn out to be $1.60 per jar? Note: Do not round intermediate calculations. Enter your answer in millions, rounded to 2 decimal places. c. What is NPV if fixed costs turn out to be $2.4 million per year? Note: Do not round intermediate calculations. Enter your answer in millions, rounded to 2 decimal places. d. At what price per jar would the project's NPV equal zero? Note: Enter your answer in dollars, not in millions. Do not round Intermediate calculations. Round your answer to 2 decimal places. a. NPV b. NPV c. NPV d. Price