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Question ?) You are considering project that requires a purchase of equipment that costa $5,235,000. The equipment has a 15-year life, and has no walvage
Question ?) You are considering project that requires a purchase of equipment that costa $5,235,000. The equipment has a 15-year life, and has no walvage valuedretten tightne te mers. The required return on the project b 17.5 percent, and the tax rates 21 percent. You work with three marion, with the following estimations Unit Sales (UAT Prie per Unit Variable Costs/Unit Fred Costannual) Rare Case 50,000 110 65 400,000 Worst Care 40,000 95 75 450,000 Ret Case 60,000 120 60 350,000 Initial Cost Life Required return Tax Rate $ 5,235,000.00 15 18% 21% Part 1) What are NPVfor the Base-case, the best-case, and worst-case scenarios? (4 points) Base Case Worst Case Best Case Sales (Revenue) Variable Cost Fixed Cost Depreciation EBIT Taxe Net Income Operating Cash Flow (OCF) NPV Part B) Based on the costs of the base case, what is the accounting break-even level of output (annual unit sales) for this project
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