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done. He asks, "What would be the NPV of the project if annual unit sales vary from 400,000, 450,000, ..., 900,000 and if the unit price per bar varies from $1.20, $1.30, ..., $1.70?" Show the Data Table that answers his question. 10. (Cash-flow analysis) The "Less Is More" company manufactures swimsuits. The company is considering expanding to the bathrobe market. The proposed investment plan includes: Purchase of a new machine: The cost of the machine is $150,000, and its expected life span is 5 years. The machine will be depreci- ated to zero salvage value, but the chief economist of the company estimates that it can be sold for $20,000 at the end of 5 years. Advertising campaign: The head of the marketing department esti- emates that the campaign will cost $80,000 annually. . Fixed costs: Incremental fixed costs of the new department will be $40,000 annually. Variable costs: First-year variable costs are estimated at $30 per bathrobe, but due to the expected increase in labor costs, they are expected to rise at 5% per year. Price per bathrobe: Each of the bathrobes will be sold at a price of $45 at the first year. The company estimates that it can raise the price of the bathrobes by 10% in each of the following years. The "Less Is More" discount rate is 10%, and the corporate tax rate is 36%. a. What is the break-even point of the bathrobe department (what is the minimal number of units it needs to sell so the expansion is profitable)? b. Plot a graph in which the NPV is the dependent variable of the annual production. 1. (Cash-flow analysis, replacing equipment) The "Car Clean" company oper- ates a car wash business. The company's current cleaning machine was bought 2 years ago at the price of $60,000. The life span of this machine is 6 years, the machine has no disposal value, and the current market value of the machine is $20,000; depreciation is on a straight-line harin is considering ronde

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