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international Paper is considering a new product launch. The project will cost $ 500, 000 , have a 5-year ife, and have no salvage value;

international Paper is considering a new product launch. The project will cost $ 500, 000 , have a 5-year ife, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 200 units per year price per unit will be $ 20,000. variable cost per unit will be $10,000 , and fixed costs will be 300, 000 per year. The relevant tax rate is 21 percent. Based on your experience, you think the unit ales, variable costand fixed cost projections given here are probably accurate to within +/-5 percent.

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