Please solve it

The Indian companies act allows SLM depreciation but not the Tax act. Since, there is no depreciation rate mentioned here, you can follow SLM method with full tax paid without arrears. This question is not so well structured. Coming to the sensitivity analysis, You have to find out what amount of changes in the variables like no. of units, selling price or Variable costs will make NPV=0 (Break even). This is the best method of simulation in financial modelling. Other wise, there are formulas to find out what independent variable should increase or decrease to make NPV=0, but I am unaware of the logical formulas for your question requirements. The sensitivity analysis has drawbacks like changes to amounts required are individual i.e., you have change every single variable to check at what amount will NPV=0. Time consuming!

Year	Equipment	Income	Tax allowable depreciation	Running costs	Net CF	DF @ 10%	PV of CF
0	-30000		1000		-29000	1	-29000
1		54000	1000	10200	44800	0.91	40768
2		54000	1000	10200	44800	0.83	37184
3		54000	1000	10200	44800	0.75	33600
4		54000	1000	10200	44800	0.68	30464
5		54000	1000	10200	44800	0.62	27776
						NPV	140792
	Depreciation	RB	Tax Saved
0	2000	28000	1000
1	2000	26000	1000
2	2000	24000	1000
3	2000	22000	1000
4	2000	20000	1000

	Units sold	Sold @ 30	Variable costs	Fixed costs	Running costs
Pessimistic	800	24000	12000	3000	15000
Optimistic	1800	54000	7200	3000	10200

Year	Equipment	Income	Tax allowable depreciation	Running costs	Net CF	DF @ 10%	PV of CF
0	-30000		1000		-29000	1	-29000
1		24000	1000	15000	10000	0.91	9100
2		24000	1000	15000	10000	0.83	8300
3		24000	1000	15000	10000	0.75	7500
4		24000	1000	15000	10000	0.68	6800
5		24000	1000	15000	10000	0.62	6200
						NPV	8900
	Depreciation	RB	Tax Saved
0	2000	28000	1000
1	2000	26000	1000
2	2000	24000	1000
3	2000	22000	1000
4	2000	20000	1000
5	2000	18000	1000
	Units sold	Sold @ 30	Variable costs	Fixed costs	Running costs
Pessimistic	800	24000	12000	3000	15000
Optimistic	1800	54000	7200	3000	10200