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We are evaluating a project that costs $837,367, has an eight-year life, and has no salvage...

We are evaluating a project that costs $837,367, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 61,080 units per year. Price per unit is $39, variable cost per unit is $18, and fixed costs are $419,261 per year. The tax rate is 35%, and we require a return of 21% on this project. In dollar terms, what is the sensitivity of NPV to changes in the units sold projection?

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jeff jeffy answered 2 hours ago
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