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You are considering a new product launch The propel will cost $1,192, 500 have a five year life and have no salvage value; depreciation is

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You are considering a new product launch The propel will cost $1,192, 500 have a five year life and have no salvage value; depreciation is straight-line to zero. Sales are projected at 230 units per year price per unit will be $18,500. variable cost per unit will be $15 000 and fixed costs will be $321, 000 per year The required return on the project b 13 percent and the relevant tax rate is 30 percent Requirement Based on your experience you think the unit sales variable cost and fixed cost projections given here are probably accurate to within plusminus 10 percent What are the best and worst case NPVs with these projections? What it the base-case NPVs with these projections

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