Rolex Corporation is considering the risk characteristics of a project. The firm has identified that the following factors with their respective expected values have a bearing on the NPV of this project: Sr. Particulars Amount No. (Rs) 1. Initial Investment 30,000 2. Cost of capital 10% 3. Quantity manufactured and sold annually 1400 4. Price per unit 30 5. Variable cost per unit 20 6. Fixed cost 3000 7. Depreciation 2000 8. Tax rate 50% 9. Life of the project 10. Net salvage value Nil Assume that the following underlying variables may have values as shown below: Underlying Variables Pessimistic Optimistic Quantity manufactured and sold 800 1800 Price per unit Rs 20 Rs 50 Variable cost per unit Rs 40 Rs 15 5 years Required: (A) Calculate the sensitivity of net present value to variation in (i) quantity manufactured and sold (ii) price per unit. (B) Calculate the accounting breakeven point and the financial breakeven point