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We are evaluating a project that costs $ 5 2 0 , 0 0 0 , has a life of 6 years, and has no
We are evaluating a project that costs $ has a life of years, and has no
salvage value. Assume that depreciation is straightline to zero over the life of the
project. Sales are projected at units per year. Price per unit is $ variable cost
per unit is $ and fixed costs are $ per year. The tax rate is percent, and we
require a return of percent on this project. Suppose the projections given for price,
quantity, variable costs, and fixed costs are all accurate to within percent. Calculate
the bestcase and worstcase NPV figures. A negative answer should be indicated by a
minus sign. Do not round intermediate calculations and round your answers to
decimal places, eg
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