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A project has an initial cost of $46,000 for equipment, which will be depreciated straight-line to zero over the four-year life of the project. There
A project has an initial cost of $46,000 for equipment, which will be depreciated straight-line to zero over the four-year life of the project. There is no salvage value on the equipment. No working capital is required. Sales are estimated at 10,000 units at a selling price of $22.50 per unit. Variable costs are $14.75 and fixed costs are $56,500. The tax rate is 34% and the required rate of return is 10%. For every $1 increase in the variable cost per unit the net present value will: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Increase by $10,593. b Decrease by $10,593. Increase by $20,922. d Decrease by $20,922. e Decrease by $10,000
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