The management team of a company are determining the sensitivity analysis of a project. In the first scenario, the project has the following information: depreciation life = 5; project cost = $1,500,000; unit sales = 25,000; unit Price = $200; unit variable cost = $160; fixed costs = $250,000; tax rate 34%; rate of return = 12%. In the second scenario, it was determined that if the price falls to $175 per unit, then sales will increase to 50,000 units, while all other variables would remain the same. Given this information, determine the NPV of both scenarios.

The management team of a company are determining the sensitivity analysis of a project. In the first scenario, the project has the following information: depreciation life = 5; project cost = $1,500,000; unit sales = 25,000; unit Price = $200; unit variable cost = $160; fixed costs = $250,000; tax rate 34%; rate of return = 12%. In the second scenario, it was determined that if the price falls to $175 per unit, then sales will increase to 50,000 units, while all other variables would remain the same. Given this information, determine the NPV of both scenarios. Multiple Choice O First scenario NPV = $452,051; second scenario NPV = $557,263. O First scenario NPV = $452,051; second scenario NPV = $357,263. O First scenario NPV = $352,051; second scenario NPV = $457,263. First scenario NPV = $652,051; second scenario NPV = $57,263. O First scenario NPV = $552,051; second scenario NPV = $257,263