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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

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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 458, vaate per fixed cost $37500 per year. The tax rate and the required rate of retum 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 posts)

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