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Company ABC i s planning on a new project. The project will last 00. This initial investment cost will decrease by $5,000 if the company

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Company ABC i s planning on a new project. The project will last 00. This initial investment cost will decrease by $5,000 if the company delays the start of the project in one year's time, in which case, the project will last 4 years. The company expects to sell 1,000 units, give or take 10%. The sales price is estimated to be $15 per unit, give or take 20%. The expected variable cost per unit is $10 and the expected fixed cost is $12,000-both variable cost and fixed cost are estimated to be within a plus or minus 5% range. The depreciation expense is $6,000 per year. The company is doing a scenario analysis. Assume the company's tax rate is 40%. 1. What is the Sales revenue for the most optimistic scenario (best case)? 2. What is the variable cost per unit for the most optimistic scenario (best case)? 3. What is the operating cash flow (OCF) for the most optimistic scenario (best case)? 4. What is the NPV for the most optimistic scenario (best case)? What is the NPV in the normal scenario, if the company starts it right away? What is the NPV in the normal scenario, if the company starts it in one year's time? Present the NPV in oday's term so that you can company the answer with that in Q5 and make a decision regarding when the ompany should start the project

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