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We are evaluating a project that costs $ 2 , 1 0 0 , 0 0 0 , has a 7 - year life, and

We are evaluating a project that costs $2,100,000, has a 7-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 98,600 units per year. Price per unit is $37.79, variable cost per unit is $23.90, and fixed costs are $857,000 per year. The tax rate is 24 percent, and we require a return of 10 percent on this project.
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