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We are evaluating a project that costs $827,000, has an seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over

We are evaluating a project that costs $827,000, has an seven-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 103,000 units per year. Price per unit is $35, variable cost per unit is $22, and fixed costs are $831,135 per year. The tax rate is 38 percent, and we require a 16 percent return on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 13 percent. Calculate the best-case NPV. Calculate the worst-case NPV.

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