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You are conaldering a new product launch. The project will cost $790,000, have a 4 year life, and have no calvage value, depredation is straight

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You are conaldering a new product launch. The project will cost $790,000, have a 4 year life, and have no calvage value, depredation is straight line to zero. Sales are projected at 490 units per year, price per unit will be $18,100, variable cost per unit will be $14,900. and fixed costs will be $765,000 per year. The required return on the project to 17 percent, and the relevant tax rate to 22 percent a. The unit sales, variable cost, and fixed cost projections given above are probably accurate to within 3:10 percent. What are the upper and lower bounds for these projections? What is the base-case NPV? What are the best-case and worst-case scenarios? (A negative amount should be Indicated by a minus sign. Do not round Intermediate calculations and round your NPV answers to 2 decimal places, e.g. 3216.) Zoenarto Unit Sales Variable cost per unit Fixed cos Upper bound Lower bound 530 441 units $ 16,390$ 12,410 $ 841,500S GB8.500 Boonario Base-ome NPV 1,047.233.57 5 Worst case b. Ce culete the sensity of your bose cose NPV to changes in foes costa. A negative amount should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to decimal places, eg. 32.161) What is the sccounting presence of output for this project! Do not round Intermediate calculations and round your answer to 2 decimal places. e.. 32.16.) LANTER 9

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