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We are evaluating a project that costs $1,720,000, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over
We are evaluating a project that costs $1,720,000, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 91,000 units per year. Price per unit is $37.95, variable cost per unit is $23.20, and fixed costs are $815,000 per year. The tax rate is 35 percent, and we require a return of 11 percent on this project Required: Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 5 porcXMIL (kallaix, tho bosi 4%xx, and Wenn 3%, NM/ iigulm; (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places (e.g., 32.16).) NPV Best-case Worst-case
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