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Question 5 1 pts We are evaluating a project that costs $835,876, has an eight-year life, and has no salvage value. Assume that depreciation is
Question 5 1 pts We are evaluating a project that costs $835,876, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 61,996 units per year. Price per unit is $35, variable cost per unit is $20, and fixed costs are $424,178 per year. The tax rate is 35%, and we require a return of 18% on this project. In percentage terms, what is the sensitivity of NPV to changes in the units sold projection? (Round answer to 2 decimal places. Do not round intermediate calculations) Topic: Sensitivity Analysis
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