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A project costs $2.43 million and has no salvage value. Depreciation is straight-line to zero over the five-year life of the project. Sales are projected at 64,000 units per year, price per unit is $73.29, variable cost per unit is $42.93, and fixed costs are $623,000 per year. The tax rate is 35 percent, and the required rate of return is 11percent. What is the sensitivity of NPV to a 100-unit increase in the sales figure?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92408279

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