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You are considering starting a new factory producing small electric heaters. Each unit will sell at a price of $78. The production cost of each

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You are considering starting a new factory producing small electric heaters. Each unit will sell at a price of $78. The production cost of each heater is $62. The fixed cost of production is $40000. You are expecting to sell 8600 units per year. This project has an economic Ife of 12 years: The project requires an investment of 5335000 in plants and equipront. This equipment will be deprecialed using a straight-line deprociation mothod to a salvage value of zero. The required rate of return for the project is 11 percent. The marginal corporate tax rate is 21 percent. Do a sensitivity arialysis using different numbers of production units. Assume that numbers of units can be between 6880 and 10750 units. What is the minimum net present value based on the range of units expected to be sold? 62450624996250362499

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