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We are evaluating a project that costs $ 8 6 8 , 0 0 0 , has an eight - year life, and has no

We are evaluating a project that costs $868,000, has an eight-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 73,000 units per year. Price per unit is $51, variable cost per unit is $33, and fixed costs are $767,000 per year. The tax rate is 35%, and we require a 10% return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within \pm 10%.
Calculate the best-case and worst-case NPV figures. (Omit $ sign in your response. Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Best-case NPV $ 4292090.00 Numeric ResponseEdit Unavailable. 4292090.00 correct.
Worst-case NPV $ 1403957.36

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