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Please try to answer the questions without the template. The template is not needed to get the actual answers. Please show work, steps and answers.
Please try to answer the questions without the template. The template is not needed to get the actual answers. Please show work, steps and answers.
Consider the following base case proposal for an investment in a plant in Georgia: Capital investment Project life in years Depreciation method Unit sales p.a Total fixed costs p.a. $5,000,000 5 Straight-line 200,000 $300,000 Unit sales price Unit variable cost Tax rate Cost of funds $16 $5 30% 15% Required: Complete the base case, best case and worst case scenarios, assuming the unit sales price, and the variable and fixed cost estimates are only accurate to within +/- 20% of the base case estimates. Use the template that we used in class to complete this exercise. (See Solution to Chapter 11, Problem no. 6 for the template.)Step by Step Solution
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