Expected sales 10000 units/year

Sellinf price/unit 600 Pessimistic sales

Variable cost 4000000 Avg sales
Fixed cost 500000 Optimistic sales
Depriciation 10%

Case1: Sensitivity wrt sales

Pessimistic Average Optimistic
Revenue 5400000 6000000 6600000
Variable cost 3600000 4000000 4400000
Fixed cost 500000 500000 500000
Depriciation 400000 400000 400000
EBIT 900000 1100000 1300000
Tax 270000 330000 390000
EAT 630000 770000 910000
CF 1030000 1170000 1310000
PVIFA 4.487 4.487 4.487
PV 4621610 5249790 5877970
NPV 883210 1511390 2139570

Therefore variation due to qty of sales is: 628180

Pessimistic sales 9000 units
10000 units
Optimistic sales 11000 units

Cost of proj 4000000

Salvage val 800000
PV of salvage val 261600 from table
Net Investment 3738400
Expected sales 10000 units/year
Sellinf price/unit 600 Pessimisticselling price
Variable cost 4000000 Avg selling price
Fixed cost 500000 Optimistic selling price
Depriciation 10%

Case1: Sensitivity wrt selling price

PessimisticAverage Optimistic
Revenue 5700000 6000000 6300000
Variable co 4000000 4000000 4000000
Fixed cost 500000 500000 500000
Depriciati 400000 400000 400000
EBIT 800000 1100000 1400000
Tax 240000 330000 420000
EAT 560000 770000 980000
CF 960000 1170000 1380000
PVIFA 4.487 4.487 4.487
PV 4307520 5249790 6192060
NPV 569120 1511390 2453660

Therefore variation due to qty of sales is: 942270

Cost of proj
Salvage val
PV of salvage v
Net Investmen
 570
600
630

4000000
800000
261600 from table
3738400
Expected sales 10000 units/year
Sellinf price/unit 600 Pessimisticselling pric 4240000
Variable cost 4000000 Avg selling price 4000000
Fixed cost 500000 Optimistic selling pric 3760000
Depriciation 10%

Case1: Sensitivity wrt sales

Pessimistic Average Optimistic
Revenue 6000000 6000000 6000000
Variable cost 4240000 4000000 3760000
Fixed cost 500000 500000 500000
Depriciation 400000 400000 400000
EBIT 860000 1100000 1340000
Tax 258000 330000 402000
EAT 602000 770000 938000
CF 1002000 1170000 1338000
PVIFA 4.487 4.487 4.487
PV 4495974 5249790 6003606
NPV 757574 1511390 2265206

Therefore variation due to qty of sales is: 753816

Cost of pro 4000000

Salvage val 800000
PV of salva 261600
Net Invest 3738400
from table