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Magellen Industries is analyzing a new project. The data they have gathered to date is as follows: Lower Bound Expected Value Upper Bound Sales quantity
Magellen Industries is analyzing a new project. The data they have gathered to date is as follows: Lower Bound Expected Value Upper Bound Sales quantity 8500 9000 9500 Sales price per unit $9.50 $10.00 $10.50 Variable cost per unit $4.50 $5.00 $5.50 Fixed cost $16,000.00 $18,000.00 $20,000.00 Initial requirement for equipment: $120,000 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% What is the net income under the worst-case scenario? 0 -$4.875 -$7.524 -$10,400 0-$7.800 -0.27% 9.22 canned with CamScanner
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