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Sensitivity Analysis Life (years) Required Retur Tax Rate Initial Cost Salvage Value Year 2 Year 3 Units Sold Income Statement Sales Variable Cost Fixed Cost

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Sensitivity Analysis Life (years) Required Retur Tax Rate Initial Cost Salvage Value Year 2 Year 3 Units Sold Income Statement Sales Variable Cost Fixed Cost Depreciation EBIT Tax Net Income Depreciation OCF Initial Cost NWC OCF ATSV NWC L Total NPV Unit Sales Sensitivity NPV SUCIUS 101 IC VI YUI IU POJLL. Unit Sales 50,000 Lower Bound Base Case Upper Bound Sales Price per Unit $6.25 $8.00 $10.00 Variable Cost per Unit $3.50 $4.50 $5.00 150,000 4. (EXCEL TEMPLATE) Assume that Tiffany has contracted with a supplier at a guaranteed variable cost per unit of $4.00 and signed a contract with the Olympic committee to sell the lamps for $8.00 per unit. Calculate the sensitivity of the project's NPV to changes in the number of units sold. Use a range between 50,000 and 150,000 at increments of 10,000 units. Sensitivity Analysis Life (years) Required Retur Tax Rate Initial Cost Salvage Value Year 2 Year 3 Units Sold Income Statement Sales Variable Cost Fixed Cost Depreciation EBIT Tax Net Income Depreciation OCF Initial Cost NWC OCF ATSV NWC L Total NPV Unit Sales Sensitivity NPV SUCIUS 101 IC VI YUI IU POJLL. Unit Sales 50,000 Lower Bound Base Case Upper Bound Sales Price per Unit $6.25 $8.00 $10.00 Variable Cost per Unit $3.50 $4.50 $5.00 150,000 4. (EXCEL TEMPLATE) Assume that Tiffany has contracted with a supplier at a guaranteed variable cost per unit of $4.00 and signed a contract with the Olympic committee to sell the lamps for $8.00 per unit. Calculate the sensitivity of the project's NPV to changes in the number of units sold. Use a range between 50,000 and 150,000 at increments of 10,000 units

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