Question: Consider the same project as Project NPV - Basics. Let's examine the details of how you forecast the project cash flows. Suppose that Direct Labor,

Consider the same project as Project NPV - Basics. Let's examine the details of how you forecast the project cash flows. Suppose that Direct Labor, Materials, Selling Expenses, and Other Variable Costs are forecast to be $3.50,

$2.00, $1.20, and $0.70, respectively, in year 1 and then grow with inflation.

Lease Payment, Property Taxes, Administration, Advertising, and Other cash fixed costs are forecast to be $2,800, $580, $450, $930, and $520, respectively, in year 1 and then grow with inflation. What is the Total Variable Cost / Unit and the Total Cash Fixed Costs?

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