You would like to test the sensitivity of the projects npv


A project has a projected sales quantity of 810 units, a sales price of $56 a unit, a variable cost per unit of $38, and fixed costs of $5,200. All estimates are within a plus or minus range of 3 percent. You would like to test the sensitivity of the project's NPV to the sales quantity. Which one of the following sales prices should you use in your analysis?

A. $53.27
B. $54.32
C. $56.00
D. $57.68
E. $60.00

 

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Finance Basics: You would like to test the sensitivity of the projects npv
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