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Business, 05.12.2019 22:31 Angel4345

We are evaluating a project that costs $1,140,000, has a five-year life, and has no salvage value. assume that depreciation is straight-line to zero over the life of the project. sales are projected at 87,300 units per year. price per unit is $34.40, variable cost per unit is $20.65, and fixed costs are $753,000 per year. the tax rate is 35 percent, and we require a return of 10 percent on this project. suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.
calculate the best-case and worst-case npv figures. (a negative answer should be indicated by a minus sign. enter your answers in dollars, not millions of dollars, e. g. 1,234,567. do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)

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We are evaluating a project that costs $1,140,000, has a five-year life, and has no salvage value. a...
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