2. We are evaluating a project that costs $1.68 million, has a five-year life, and...
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2. We are evaluating a project that costs $1.68 million, has a five-year life, and has no salvage value. Assume depreciation is otraight-line to zero over the life of the project. Sales are projeoted at 82,000 unite per year. Price per unit is $43.29, variable cost per unit is $22.18, and fixed costs are $623,000 per year. The tax rate is 34 percent, and we require a 10 percent return on thie project. What is the sensitivity of NPV to a 100-unit change in the sales figure? A. 3,998.40 B. 4,609.1 C. 4,897.20 D. $5,281.55 g, ss,557.12 1
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