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A new 5 year project has expected sales of 3,400 units, 18 percent; variable costs per unit of $22, 2%; annual fixed costs 2 percent;

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A new 5 year project has expected sales of 3,400 units, 18 percent; variable costs per unit of $22, 2%; annual fixed costs 2 percent; annual depreciation of $33,000; and a sale price of $45 a unit, 13 percent. The project initially requires 1500 offixed assets and $42,000 of net working capital. At the end of the project, the networking capital will be recond and the foxed assets will produce an aftertax cash inflow of $35,000. The tax rate is 21 percent and the discount rate is 14 percent What is the net present value of the optimistic scenario? (10 points)

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