We are evaluating a project that costs $992,000, has a life of twelve years, and has no salvage value Assume that depreciation is straight line to zero over the life of the project Sales are projected at 159,000 units per year Price per unit is $37, variable cost per unit is $24, and fixed costs are $993,984 per year The tax rate is 24 percent, and we require a return of 12 percent on this project The projections given for price, quantity, variable costs, and fixed costs are all accurate to within 17 percent Calculate the best case NPV 15,713,923 $14,122,926 $6,976,578 $16,499,619 $14,928,227 Calculate the worst case NPV 4,710,043 $ 3,119,046 $1,950,586 $6,976,578 $16,499,619

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We are evaluating a project that costs $992,000, has a life of twelve years, and has no salvage value  Assume that depreciation is straight line to zero over the life of the project  Sales are projected at 159,000 units per year  Price per unit is $37, variable cost per unit is $24, and fixed costs are $993,984 per year  The tax rate is 24 percent, and we require a return of 12 percent on this project  The projections given for price, quantity, variable costs, and fixed costs are all accurate to within     17 percent  Calculate the best case NPV  15,713,923 $14,122,926 $6,976,578 $16,499,619 $14,928,227 Calculate the worst case NPV    4,710,043 $ 3,119,046 $1,950,586 $6,976,578 $16,499,619

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We are evaluating a project that costs $992,000, has a life of twelve years, and has no

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Fundamentals Of Corporate Finance

We are evaluating a project that costs $992,000, has a life of twelve years, and has no

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Fundamentals Of Corporate Finance

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