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We are evaluating a project that costs $105,424, has a seven-year life, and has no salvage value. Assume that depreciation is straightline to zero over
We are evaluating a project that costs $105,424, has a seven-year life, and has no salvage value. Assume that depreciation is straightline to zero over the life of the project. Sales are projected at 4,178 units per year. Price per unit is $48, variable cost per unit is $24, and fixed costs are $83,385 per year. The tax rate is 35 percent, and we require a 7 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/13 percent. What is the NPV of the project in best-case scenario? (Negative amount should be indicated by a minus sign. Round your final answer to the nearest dollar amount. Omit the "\$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)
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