Question
We are evaluating a project that costs $831,000, has an nine-year life, and has no salvage value. Assume that depreciation is straight-line to zero over
We are evaluating a project that costs $831,000, has an 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 100,000 units per year. Price per unit is $37, variable cost per unit is $21, and fixed costs are $832,662 per year. The tax rate is 33 percent, and we require a 14 percent return on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 20 percent. Calculate the Best and worst case NPV. please show your work on excel so I can understand. Thank You! |
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