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Shultz Business Systems is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should

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Shultz Business Systems is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years, it will be depreciated on a straight-line basis, and there will be no salvage value. This is just one of many projects for the firm, so any losses can be used to offset gains on other fimm projects. What is the project's expected NPV? 10.0% $200,000 50,000 $25.00 $150,000 $20.20 33.333% Project cost of capital () Net investment cost (depreciable basis) Units sold Average price per unit, Year 1 Fixed op. cost excl. deprec. (constant) Variable op. cost/unit, Year 1 Annual depreciation rate Expected inflation rate per year Tax rate $32,140 b. $30,610 $29,079 d. $27,625 $33,747 5.00% 25.0% a. c. c

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