** Home work help please**

Question 7 5.6 pts As a financial analyst, you must evaluate a proposed project to produce printer cartridges. The purchase price of the equipment, including installation, is $65,000, and the equipment will be fully depreciated at t = O. Annual sales would be 4,000 units at a price of $50 per cartridge, and the project's life would be 3 years. Current assets would increase by $5,000 and payables by $3,000. At the end of 3 years, the equipment could be sold for $10,000. Variable costs would be 70% of sales revenues, fixed costs would be $30,000 per year, the marginal tax rate is 25%, and the corporate WACC is 11%. The CFO asks you to do a scenario analysis using these inputs: Scenario Best case Base case Worst case Probability 50 25 Unit Sales 4,000 3,200 vco,'o 70 75 Other variables are unchanged.