Question
1a. Community Healthcare, Inc. has the following estimates for a project under consideration: price = $146 per unit; variable costs = $27 per unit; fixed
1a. Community Healthcare, Inc. has the following estimates for a project under consideration: price = $146 per unit; variable costs = $27 per unit; fixed costs = $39,044; quantity = 7,557 units. Suppose the company believes all of its estimates are accurate only within +/-11 percent. What is the company's operating income when it performs its best-case scenario analysis? (Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)
1b. Community Healthcare, Inc. has the following estimates for a new project under consideration: price = $152 per unit; variable costs = $31 per unit; fixed costs = $39,994; quantity = 7,496 units. Suppose the company believes all of its estimates are accurate only within +/-17 percent. What is the company's operating income when it performs its worst-case scenario analysis? (Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)
1c. We are evaluating a project that costs $103,386, has a seven-year life, and has no salvage (terminal) value. Sales are projected at 4,291 units per year. Price per unit is $53, variable cost per unit is $26, and fixed costs are $83,629 per year. We require a 8 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-12 percent. What is the NPV of the project in the best-case scenario? (Negative amount should be indicated by a minus sign. Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)
1d. We are evaluating a project that costs $106,288, has a seven-year life, and has no salvage (terminal) value. Sales are projected at 4,198 units per year. Price per unit is $50, variable cost per unit is $26, and fixed costs are $80,380 per year. We require a 9 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-13 percent. What is the NPV of the project in the worst-case scenario? (Negative amount should be indicated by a minus sign. Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)
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