While evaluating a project that costs $2.58 million having 6 years life has no salvage value. Estimated sales at $3150000 per year, price per unit is 45$, variable cost per unit is 12.5$ and fixed cost $37500 per year. The tax rate and

the required rate of return is 18% and 11% respectively. Show the steps of computation.

1. Find the base cash flow and base NPV (3 points)

2. What is the sensitivity of NPV to change is sales figure (2 points)

3. Find the NPV change for a 400 unit decrease of projected sales (2 points)

astion 5 po Who evaluating a project that costs 2.5 years to bas rosalega sted sales 2551.000 per rice per 15, with content 1295 and cooperate the required to return is 10 and 11.rospectively show that of computation 1 Find the base show and NV (pants 2. What's the worstly of NFV to changes is our 2 ports) 3. Find the change for 400 unit decrease of procesas (2 points)