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We are evaluating a project that costs $ 8 4 5 , 0 0 0 , has an eight - year life, and has no
We are evaluating a project that costs $ has an eightyear life, 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.
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tableInitial cost$
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