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Emperors Clothes Fashions can irvest $5.04 milion in a new plant for producing invisible makeup. The plant has an expected Ite of five years, and
Emperors Clothes Fashions can irvest $5.04 milion in a new plant for producing invisible makeup. The plant has an expected Ite of five years, and expected sales are 6.01 million jars of makeup a year. Fixed costs are 52.10 million a year, and wariable costs are 51.10 perjar. The product will be priced at $210 per jar. The plant will be depreclated straight-ine over five years to a savage value of zero. The upportumby cust of capital is 10%, and the lex tate is 40%. a. What is prolect NFV under these base-case assumotions? (Do not round intermediate colculations. Erref your answer in thousands not in millions and round your answer to the nearest whole dollar amount.) b. What is NPV it variable costs tum out to be $1.70 per jar? (Do not round intermediate calculations. Enter your answer in thoussnds not in millions and round your answer to the nearest whole dollar amount.) c. What is NPry it tixed costs turn out to be \$1.60 mellion peryear? (Do not round intermediate calculations. Enter your answer in thousands not in millions and round your answer to the nearest whole dollar amount.) d. At what price per jar would projert NPV ngual tero? 'Do not round intermediate calculations. Round your answer to 2 decimal places.)
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