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the most likely outcome for a particular project are estimated as follows: unit price $50 variable cost: $30 fixed costs $500000 expected sales: 49000 units
the most likely outcome for a particular project are estimated as follows: unit price $50 variable cost: $30 fixed costs $500000 expected sales: 49000 units per year. however you recognize that some of these estimates are subject to error. suppose each variable turns out to be either 10% higher or 10% lower than the initial estimate. The project will last for 10 years and requires an initial investment of $2.2 million, which will be depreciated straight line over the project life to a final value of zero. The firms tax rate is 21% and the required rate of return is 12%. a. What is projects NVP in the best case scenario, that is assuming all variables take on the best
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