Question

We are evaluating a project that costs $841663, 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 59901 units per year. Price per unit is $42, variable cost per unit is $20, and fixed costs are $423806 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? Answer is 2.11 please show all work I need to find out where my calculations are off at

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