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You are considering a new product launch. The project will cost $930,000, have a 5 -year life, and have no salvage value; depreciation is straight-line

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You are considering a new product launch. The project will cost $930,000, have a 5 -year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 320 units per year; price per unit will be $15,925, variable cost per unit will be $11,850. and fixed costs will be $610,000 per year. The required return on the project is 11 percent, and the relevant tax rate is 25 percent Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within 10 percent. What are the OCF and NPV with fixed costs of $620,000 per year? Note: Do not round intermediate calculations. Round your OCF answer to the nearest whole number, e.g., 32 , and round your NPV answer to 2 decimal places, e.g. 32.16. What is the sensitivity of your base-case NPV to changes in fixed costs? Note: Enter your answer as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places, e.9., 32.16

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