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You expect to sell 10.000 units with the selling price $2 each unit. In beginning of the year, you supposed to proposed a 5 year

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You expect to sell 10.000 units with the selling price $2 each unit. In beginning of the year, you supposed to proposed a 5 year project with initial cash outlay for fixed asset $25.000 and this assets will be depreciated straight line to zero at the on the project. Cost for this project are fixed costs will be $5.000 and variable costs $0.75 per unit. The project requires an initial investment in net working capital of $10.000 which will be recovered in full at the end of the project's life. The required return is 15% and taxes is 35%. Should we accept the project? Why? Use NPV and IRR. (Prepare with pro forma income statement, projected capital requirements, and projected cash flow)

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