Year	0	1	2	3	4
MACRS		0.3333	0.4445	0.1481	0.0741
Unit Sales		3600	4300	5200	3900
Selling price per unit		$ 750.00	$ 750.00	$ 750.00	$ 750.00
Sales revenues		$ 2,700,000.00	$ 3,225,000.00	$ 3,900,000.00	$ 2,925,000.00
Fixed Costs		$ 415,000.00	$ 415,000.00	$ 415,000.00	$ 415,000.00
Variable costs (15% of sales revenue)		$ 405,000.00	$ 483,750.00	$ 585,000.00	$ 438,750.00
Depreciation		$ 1,166,550.00	$ 1,555,750.00	$ 518,350.00	$ 259,350.00
EBIT		$ 713,450.00	$ 770,500.00	$ 2,381,650.00	$ 1,811,900.00
Tax		$ 271,111.00	$ 292,790.00	$ 905,027.00	$ 688,522.00
Net Income		$ 442,339.00	$ 477,710.00	$ 1,476,623.00	$ 1,123,378.00
OCF		$ 1,608,889.00	$ 2,033,460.00	$ 1,994,973.00	$ 1,382,728.00
Capital Spending	$ (3,500,000.00)				$ 217,000.00
Land	$ (2,300,000.00)				$ 2,400,000.00
Net working capital	$ (125,000.00)				$ 125,000.00
Spending All	$ (5,925,000.00)	$ 1,608,889.00	$ 2,033,460.00	$ 1,994,973.00	$ 4,124,728.00
PV	1	0.884955752	0.783146683	0.693050162	0.613318728
PV of cash flow	-5925000	1423795.575	1592497.455	1382616.361	2529772.929
NPV	1,003,682.32

1. Suppose you believe that the marketing departments price projection is accurate only to within 10 percent. Please calculate worst and best cases scenario NPV values?
2. How should the annual interest expenses of $100,000 be treated? Explain.
3. Calculate the IRR of the project. Based on your calculations what do you recommend? Why?
4. How sensitive is the net present value of the project to the cost of capital? Show it with a table and a graph.

Use the base case estimates calculate the cash and accounting break-even of the project. Interpret each one.