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We are evaluating a project that costs $990,000, has an fourteen-year life, and has no salvage value. Assume that depreciation is straight-line to zero over

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We are evaluating a project that costs $990,000, has an fourteen-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 142,000 units per year. Price per unit is $36, variable cost per unit is $26, and fixed costs are $995,940 per year. The tax rate is 33 percent, and we require a 13 percent return on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/15 percent. Required: (a)Calculate the best-case NPV. (Do not round your intermediate calculations.) (b)Calculate the worst-case NPV. (Do not round your intermediate calculations.)

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