Sensitivity of npv to changes in units sold projection

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Reference no: EM131985540

We are evaluating a project that costs $836524, 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 56770 units per year. Price per unit is $39, variable cost per unit is $21, and fixed costs are $422919 per year. The tax rate is 35%, and we require a return of 19% on this project. In percentage terms, what is the sensitivity of NPV to changes in the units sold projection? (Round answer to 2 decimal places. Do not round intermediate calculations)

Reference no: EM131985540

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