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We are evaluating a project that costs $822,600 has a nine year life, and has no salvage value. Problem 11-6 Scenario Analysis [LO2] 8 1
We are evaluating a project that costs $822,600 has a nine year life, and has no salvage value.
Problem 11-6 Scenario Analysis [LO2] 8 1 points We are evaluating a project that costs $822,600, has a nine-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 75,000 units per year Price per unit is $53. variable cost per unit is $37 and fixed costs are $755,000 per year. The tax rate is 22 percent, and we require a return of 9 percent on this project. Suppose the projections given for price, quantity. variable costs and fixed costs are all accurate to within 10 percent. eBook Calculate the best-case and worst-case NPV figures. (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) Print NPV Bost-case Worst case Step by Step Solution
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