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You are considering a new product launch. The project will cost $2,100,000, have a four-year life, and have no salvage value; depreciation is straight-line to

You are considering a new product launch. The project will cost $2,100,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 160 units per year; price per unit will be $27,000, variable cost per unit will be $16,500, and fixed costs will be $570,000 per year. The required return on the project is 14 percent, and the relevant tax rate is 32 percent.

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a. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within t10 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? (Negative amount should be indicated by a minus sign. Round your NPV answers to 2 decimal places. (e.g., 32.160 Cost Scenario Unit Sales Variable NPV Fixed Cost Base Best Worst

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