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You are evaluating a project for your company. You estimate the sales price to be $ 6 4 0 per unit and sales volume to
You are evaluating a project for your company. You estimate the
sales price to be $ per unit and sales volume to be units
in year ; units in year ; and units in year The
project has a threeyear life. Variable costs amount to $ per
unit and fixed costs are $ per year. The project requires an
initial investment of $ in assets which will be depreciated
straightline to zero over the threeyear project life. The actual
market value of these assets at the end of year is expected to be
$ NWC requirements at the beginning of each year will be
approximately percent of the projected sales during the coming
year. The tax rate is percent and the required return on the
project is percent. What change in NWC occurs at the end of year
$$$$Please show work so I will know how to solve in future.
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