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Intro Consider a project with a 4-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated
Intro Consider a project with a 4-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated to zero over the life of the project and there is no salvage value. The required return is 15% and the tax rate is 34%. You've collected the following estimates: Base case Pessimistic Optimistic Unit sales per year (Q) 7,000 5,000 9,000 Price per unit (P) 50 4 0 Variable cost per unit (VC) 20 Fixed costs per year (FC) 30,000 50,000 20.000 60 15 Part 1 18 | Attempt 5/10 for 10 pts. What is the annual cash flow from assets in the base case? 0+ decimals Submit 18 Part 2 Attempt 1/10 for 10 pts. What is the NPV in the base case? 0+ decimals Submit Part 3 IB Attempt 1/10 for 10 pts. What is the NPV in the pessimistic case? 0+ decimals Submit Part 4 To Attempt 1/10 for 10 pts. What is the NPV in the optimistic case? 0+ decimals Submit
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