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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

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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.

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