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eferences Mailings Review View Help Grammarly O Search A project under consideration costs $200,000, has a five-year life and has no salvage value. Depreciation is

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eferences Mailings Review View Help Grammarly O Search A project under consideration costs $200,000, has a five-year life and has no salvage value. Depreciation is straight-line to zero. The firm has made the following projections related to this project: Unit Sales Price Per Unit Variable Cost Per Unit Fixed Costs Base Case 2,000 $400 $200 $300,000 Lower Bound 1,800 $360 $180 $270,000 Upper Bound 2,200 $440 $220 $330,000 The required return is 15 percent and the tax rate is 21 percent. investment in net working capital is required. No additional Requirement 1: What are the worst-case and best-case scenarios for this project? (Input unit sales as number of units. Round all other answers to the nearest whole dollar (e.g., 32).) Worst Case Best Case $ Unit Sales Price Per Unit Variable Cost Per Unit Fixed Costs S $ $ $ S Requirement 2: Your analysis of the project's NPV in the base case" shows a NPV of $92.979. However, your boss has asked you to determine the sensitivity of the project's NPV to potential changes in fixed costs Using the firm's estimate of the highest possible level of fixed costs, complete the table below and use your results to assess the sensitivity of the project's NPV to changes in fixed costs. (Round all answers except your sensitivity estimate to the nearest whole dollar (e.g. 32). Round the sensitivity estimate to 2 decimal places (e.g. 32.16). Negative amounts should be indicated by a minus sign) Sales ST Sharon This PC La Libraries Network Document2 - Word rences Mailings Review View Help Grammarly O Search Price Per Unit Variable Cost Per Unit Fixed Costs Requirement 2: Your analysis of the project's NPV in the "base case" shows a NPV of $92,978. However, your boss has asked you to determine the sensitivity of the project's NPV to potential changes in fixed costs. Using the firm's estimate of the highest possible level of fixed costs, complete the table below and use your results to assess the sensitivity of the project's NPV to changes in fixed costs. (Round all answers except your sensitivity estimate to the nearest whole dollar (e.9.. 32). Round the sensitivity estimate to 2 decimal places (e.g., 32.16). Negative amounts should be indicated by a minus sign.) Sales Variable Costs Fixed Costs Depreciation EBM Haxes Net Income Operating Cash Flow Net Present Value (NPV) Ju Sensitivity (ANPV AFC)

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