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2 Ford's 10-year project is expected to provide annual sales of 40,000 units at per unit price of $50. The variable cost per unit is
2 Ford's 10-year project is expected to provide annual sales of 40,000 units at per unit price of $50. The variable cost per unit is projected to be $30. The fixed costs per year will be $410,000. You feel that each of the four variables (unit price, variable cost, fixed cost, and unit sales) may be 10% higher or 10% lower than the initial estimate. The project requires an initial investment of $1.4 million, which will be depreciated straight-line to zero over the life of the project. Determine the project's NPV in the worst-case scenario assuming a tax rate of 21% and discount rate of 14%. 20 points (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount. For example, 2,504.58 should be input as 2,505. And -98,765.46 should be input as -98,765.) 8 00:18:54
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