We are evaluating a project that costs $992,000, has a life of twelve years, and has no
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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
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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