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special number: $126 special rate: 12% Seven QUESTION1 12 points Use the information below to answer all questions on the exam Samsong Electronics is looking

special number: $126
special rate: 12%
image text in transcribed
Seven QUESTION1 12 points Use the information below to answer all questions on the exam Samsong Electronics is looking to launch a new fax machine. The fax machine project will cost $15,000,000, and it does not have a salvage value. It has a four-year life, and it will be depreciated straight line down to zero. The project will not require any changes in NWC Sarnoong Electronics expect to sell 260,000 fax machines per year at a price per unit equal to your special number. Each unit will cost $78 to produce and fixed costs are expected to amount to $5,800,000 per year. The firm has a required ratum equal to your special rate and a tax rate of 35% Samsong expects that its projections for unit sales, price per unit, variable costs and fixed costs will be accurate within a range equal to your special rate. 101 1. Calculate NPV for a base case scenario. 12 point For the toolbar, presa ALT F10 por ALT-FN-F10 MG Paragraph Aria a x' x, & 1 14 A LIXO a e F (0) r

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