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We are evaluating a project that cost 1.68 million, has a 5- year life and has no salvage value. Assume deperciation is straight-line to zero
We are evaluating a project that cost 1.68 million, has a 5- year life and has no salvage value. Assume deperciation is straight-line to zero over the life of the project. Sales are project at 82000 unit per year. Price per unit is 43.29, variable cost per unit is 22.18 and fixed cost are 623000 per year. The tax rate is 34 percent and we require a10 percent return on this project. What is the sensitivity of npv to a 90 unit change in the sales figure?
3998.40
4609.18
4753.40
5557.12
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