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Check my 5 We are evaluating a project that costs $933,000, has a life of twelve years, and has no salvage value. Assume that depreciation
Check my 5 We are evaluating a project that costs $933,000, has a life of twelve years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 83,000 units per year. Price per unit is $40, variable cost per unit is $21, and fixed costs are $946,995 per year. The tax rate is 22 percent, and we require a return of 20 percent on this project. The projections given for price, quantity variable costs, and fixed costs are all accurate to within +/- 21 percent. 1.17 points Skipped a. Calculate the best-case NPV eBook $7,614,338 $6,237,135 $3,169,999 $7,995,055 $7,233,621 References b. Calculate the worst-case NPV $-3,419,333 $-2,042,131 $-39,620 $ 3,169,999 $ 7,995,055
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