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Question #7 (2+2) Awab & Ateeb, a fast food chain is having a new project under consideration. The project initial cost is $800,000 with has
Question #7 (2+2) Awab & Ateeb, a fast food chain is having a new project under consideration. The project initial cost is $800,000 with has a 5 years life and has no salvage value. Depreciation is straight-line to zero. The required return is 18 percent and the tax rate is 34 percent. Sales are projected at 500 units per year. Price per unit is $3000, Variable Cost per unit is $1500 and Fixed Costs are $200,000 per year. Suppose your all projections given here are accurate to within 5 percent. What are the upper and lower bounds for these projections? Create the best and worst case
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