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We are evaluating a project that costs $835,201, has an eight-year life, and has no salvage...

We are evaluating a project that costs $835,201, 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 55,236 units per year. Price per unit is $37, variable cost per unit is $16, and fixed costs are $421,600 per year. The tax rate is 35%, and we require a return of 17% on this project. In percentage 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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