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What is the best-case scenario value for the project, if the market size is 1,000,000 units? Present the answer in millions of $ and round
What is the best-case scenario value for the project, if the market size is 1,000,000 units? Present the answer in millions of $ and round your answer to the nearest 0.01 (so if your answer is $5,511,000, answer 5.51).
What is the worst-case scenario value for the project, if the market size is 1,000,000 units? Present the answer in millions of $ and round your answer to the nearest 0.01 (so if your answer is $5,511,000, answer 5.51).
You are trying to determine the financial break-even (as we defined in class) market size for the following project. Your initial investment cost is $150 million, and that investment will depreciate in straight- line form over the 20-year life of the project. There are no new NWC requirements, and there will be no salvage value at the end of the 20 years. The tax rate is 25%. The discount rate is 20%. The possible values for Market Share, Price/Unit, VC/Unit, and Fixed Costs are below. Using this information, calculate the financial break-even cash flow. Input your answer in millions of dollars, rounded to the nearest 0.01 (so if your answer is $5,511,000, answer 5.51). Pessimistic Expected Optimistic Market Share 4.0% 5.0% 6.0% Price/unit $2350 $2500 $2570 VC/Unit $1900 $1540 $1100 FC $3.5 Million $2 Million $0.5 Million You are trying to determine the financial break-even (as we defined in class) market size for the following project. Your initial investment cost is $150 million, and that investment will depreciate in straight- line form over the 20-year life of the project. There are no new NWC requirements, and there will be no salvage value at the end of the 20 years. The tax rate is 25%. The discount rate is 20%. The possible values for Market Share, Price/Unit, VC/Unit, and Fixed Costs are below. Using this information, calculate the financial break-even cash flow. Input your answer in millions of dollars, rounded to the nearest 0.01 (so if your answer is $5,511,000, answer 5.51). Pessimistic Expected Optimistic Market Share 4.0% 5.0% 6.0% Price/unit $2350 $2500 $2570 VC/Unit $1900 $1540 $1100 FC $3.5 Million $2 Million $0.5 MillionStep by Step Solution
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