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You are considering a new product launch. The project will cost $820,000, have a 4-year life, and have no salvage value; depreclation is straight-line to

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You are considering a new product launch. The project will cost $820,000, have a 4-year life, and have no salvage value; depreclation is straight-line to zero. Sales are projected at 210 units per year; price per unit will be $16,400, variable cost per unit will be $11,300, and fixed costs will be $555,000 per year. The required return on the project is 12 percent, and the relevant tax rate is 24 percent. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within t10 percent. a. What are the best-case and worst-case NPVs with these projections? Note: A negative answer should be Indicated by a minus slgn. Do not round Intermediate calculations and round your answers. to 2 declmal places, e.g., 32.16. b. What is the base-case NPV? Note: Do not round intermedlate calculations and round your answer to 2 decimal places, e.9., 32.16. c. What is the sensitivity of your base-case NPV to changes in fixed costs? Note: A negative answer should be indleated by a minus slgn. Do not round intermediate calculations and round your answer to 2 declmal places, 0.0,32.46

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