Question: ( 6 ) We are evaluating a project that costs $ 7 9 2 , 0 0 0 , has a life of fourteen years,

(6)We are evaluating a project that costs $792,000, has a life of fourteen years, and has no
salvage value. Assume that depreciation is straight-line to zero over the life of the
project. Sales are projected at 154,000 units per year. Price per unit is $36, variable cost
per unit is $24, and fixed costs are $796,752 per year. The tax rate is 23 percent, and we
require a return of 13 percent on this project. The projections given for price, quantity,
variable costs, and fixed costs are all accurate to within +/-18 percent.
We are evaluating a project that costs $792,000, has a life of fourteen years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 154,000 units per year. Price per unit is $36, variable cost per unit is $24, and fixed costs are $796,752 per year. The tax rate is 23 percent, and we require a return of 13 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-18 percent.a. Calculate the best-case NPV.
Best case
b. Calculate the worst-case NPV.
Worst case
 (6)We are evaluating a project that costs $792,000, has a life

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