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We are evaluating a project that costs $701,000, has a life of fifteen years, and has no salvage value. Assume that depreciation is straight-line

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We are evaluating a project that costs $701,000, has a life of fifteen years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 100,000 units per year. Price per unit is $38, variable cost per unit is $23, and fixed costs are $704,505 per year. The tax rate is 21 percent, and we require a return of 16 percent on this project. The projections given for price, quantity. variable costs, and fixed costs are all accurate to within +/- 18 percent. a. Calculate the best-case NPV. Best case b. Calculate the worst-case NPV. Worst case

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