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Kenora Industries is analyzing a new project. They have gathered the following data: Worst Case Base Case Best Case Sales quantity 8,500 10,000 12,000 Sales

Kenora Industries is analyzing a new project. They have gathered the following data: Worst Case Base Case Best Case Sales quantity 8,500 10,000 12,000 Sales price per unit $9.25 $9.75 $10.25 Variable cost per unit $4.90 $5.10 $5.50 Fixed cost $14,000.00 $17,000.00 $20,000.00 Initial requirement for equipment: $140,000 Depreciation: Straight-line to zero over the four-year life of the project with no salvage value. Required rate of return: 15% Marginal tax rate: 35%

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