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Your boss, the finance vice president, is concerned that the variable cost percentage used (60%) might be too low, and that variable costs might actually

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Your boss, the finance vice president, is concerned that the variable cost percentage used (60%) might be too low, and that variable costs might actually amount to 70 percent of dollar sales. If variable costs do amount to 70 or even 75 percent, how would this affect the NPV of Stage 1 and the NPV of the total project? Calculate the NPV of Stage 1 at several higher variable cost percentages. Use a 10 percent cost of capital

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