You run a shoe manufacturer and you're thinking about launching a new running shoe. It will be priced at $99. It cost $37 to make each shoe. The rent and utilities of the new plant will be $100,000 per year. You will need to purchase plant and equipment of about $2,000,000 into this project. You don't believe there will be any salvage value at the end of the shoe's life, which is ten years. The investment will be depreciated using a straightline method. You believe you will sell 10,000 units. Net working capital will initially be $50,000 and then will increase by $10,000 per year throughout the life of the product. You will receive 100% of the NWC at the end of the ten years with no tax impact. Your company is in a tax bracket of 21% and your required return is 15%. What is the sensitivity of the NPV to a change in one unit sold (or not sold)?

• $368.41 per unit

• $312.78 per unit

• $478.36 per unit

• $678.12 per unit

• $245.82 per unit