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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The Answer of 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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