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STION 25 Your company is reviewing a project with estimated labor costs of 515 per unit, estimated raw material costs of $45 a unit, and

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STION 25 Your company is reviewing a project with estimated labor costs of 515 per unit, estimated raw material costs of $45 a unit, and estimated fixed costs of $25,000 a month. Sales are projected at 15,000 units, 14 percent, over the one-year life of the project. Cost estimates are accurate within a range of +2 percent. What are the total variable costs for the best-case scenario? O A $864,440 OB. 5917,280 OC. $876,716 OD. $626,320 E. 5993,720 QUESTION 26 Projects A and are mutually exclusive and have an initial cost of $78,000 each. Project A provides cash inflows of 532,000 a year for three years while Project B produces a cash inflow of $44,400 a year for two years. Which project(s) should be accepted if the discount rate is 10 percent? What if the discount rate is 12.5 percent? O A. Accept Bar 10 percent and neither at 12.5 percent OB. Accept neither Anor B at both discount rates OC. Accept both at 10 percent and neither at 12.5 percent OD. Accept B at both discount rates O E. Accept A at 10 percent and neither at 12.5 percent

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