We Are Evaluating a Project That Costs $1

We are evaluating a project that costs $1.68 million,has a five-year life,and has no salvage value.Assume depreciation is straight-line to zero over the life of the project.Sales are projected at 82,000 units 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 this project.What is the sensitivity of NPV to a 100-unit change in the sales figure?

A) $3,998.40
B) $4,609.18
C) $4,897.20
D) $5,281.55
E) $5,557.12