You are given the following forecasted data about a project: • Project life = 3 years • Required investment $1,200,000 • Salvage value = $200,000 Depreciation method = straight-line depreciation •...

Extracted text: You are given the following forecasted data about a project: • Project life = 3 years • Required investment $1,200,000 • Salvage value = $200,000 Depreciation method = straight-line depreciation • Unit price = $140 • First year's demand = 100,000 units Annual demand growth rate 5% Unit variable cost $80 Annual fixed cost = $10,000 • Income tax rate = 40% • MARR = 10% Suppose the key variable is identified here to be the unit variable cost. This variable's most likely value is $80 (as indicated above), but what would happen to the NPW if it were $90 instead? The change in the NPW values (new NPW - original NPW) is closest to: -$1,563,110.44 $1,563,110.44 -$1,875,732.53 $1,875,732.53