We are examining a new project We expect to sell 8,750 units per year at $189 net cash flow apiece (including CCA) for the next 16 years In other words, the annual operating cash flow is projected to be $189 8,750 $1,653,750 The relevant discount rate is 14 , and the initial investment required is $5,500,000 a What is the base case NPV (Do not round intermediate calculations Round the final answer to 2 decimal places Omit $ sign in your response ) Base case NPV $ b After the first year, the project can be dismantled and sold for $2,800,000 If expected sales are revised based on the first years performance, at what level of expected sales would it make sense to abandon the project (Do not round intermediate calculations Round the final answer to the nearest whole unit ) Expected sales units c Not available in Connect

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We are examining a new project  We expect to sell 8,750 units per year at $189 net cash flow apiece (including CCA) for the next 16 years  In other words, the annual operating cash flow is projected to be $189 8,750   $1,653,750  The relevant discount rate is 14 , and the initial investment required is $5,500,000  a  What is the base case NPV  (Do not round intermediate calculations  Round the final answer to 2 decimal places  Omit $ sign in your response ) Base case NPV $ b  After the first year, the project can be dismantled and sold for $2,800,000  If expected sales are revised based on the first years performance, at what level of expected sales would it make sense to abandon the project  (Do not round intermediate calculations  Round the final answer to the nearest whole unit ) Expected sales   units c  Not available in Connect

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We are examining a new project. We expect to sell 8,750 units per year at $189 net cash flow apiece (including CCA) for the next

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