4. You are considering a new product launch. The project will cost $1,800,000, have a three-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 210 units per year; price per unit will be $15,000, variable cost per unit will be $9,500, and fixed costs will be $550,000 per year. The required return on the project is 14%, and the relevant tax rate is 35%. What is the sensitivity of NPV to FC?
