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A firm is assessing a potential project with the following attributes: annual sales of 5,000 units, 25 percent; a sales price of $25 per unit,

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A firm is assessing a potential project with the following attributes: annual sales of 5,000 units, 25 percent; a sales price of $25 per unit, + 2 percent: variable costs per unit of $15, + 3 percent; and fixed costs of $18,000 per year, + 3 percent. The annual depreciation expense is $4,500. What is the annual sales revenue under the optimistic case scenario? O $125,000 O $133,875 O $116,375 $52.763 Question 7 4 pts Aroglonal form is evaluating a potential project that requires $20,000 for an initial Investment. The firm forecasts annual cashflows of $9.000 for the three-year project. If the form were to wait one year to begin this project, the initial cost will Increase 5 percent, and the project's cash flows are expected to be $9.400 per year. What is the value of the option to walt if the discount rate is 12 percent? SO

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