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A project under consideration costs $650,000, has a five-year life, and has no salvage value. Depreciation is straight-line to zero. The required return is 17

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A project under consideration costs $650,000, has a five-year life, and has no salvage value. Depreciation is straight-line to zero. The required return is 17 percent, and the tax rate is 34 percent. Sales are projected at 500 units per year. Price per unit is $2,500, variable cost per unit is $1,500, and fixed costs are $200,000 per year. Suppose you think that the unit sales, price, variable cost, and fixed cost projections given here are accurate to within 5 percent. What is the Worst case cash flow? O A $153,200 B. $163,200 c. $156,400 D. $249,000

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