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You are considering a new product launch. The project will cost $810,000, have a 4-year life, and have no salvage value; depreciation is straight-line to

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You are considering a new product launch. The project will cost $810,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 480 units per year, price per unit will be $18,300, variable cost per unit will be $15,000, and fixed costs will be $815,000 per year. The required return on the project is 13 percent, and the relevant tax rate is 24 percent. a. The unit sales, variable cost, and fixed cost -projections given above are probably accurate to within 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., 32.16.)

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