Each cell shaded Each cell shaded is valued at 0.75 points each. is valued at 2.00 points each. Chapter 8 Problem 14 a). Facts and Assumptions Initial cost $ 28,000,000 Unit sales 400,000 Selling price per unit, this year $ Variable cost per unit, this year $ Life expectancy (years) Salvage value Depreciation Straight line Tax rate 37% Nominal discount rate 10.0% Real discount rate 10.0% Inflation rate 0.0% Total value of assignment is 60 points. $0 Year Initial cost Revenue Variable cost Depreciation Income before tax Income after tax + Depreciation Free Cash Flow (ATCFS) b). IRR NPV @ nominal rate