Question: An analyst is evaluating a proposed 5 - year project that requires an investment of $ 7 7 , 0 0 0 in fixed assets

An analyst is evaluating a proposed 5-year project that requires an investment of $77,000 in fixed assets and $17,400 in net working capital. The company uses straight-line depreciation over a project's life. Sales areestimated at 24,000 units plus or minus 3 percent. The expected variable cost per unit is $17, and the expected fixed costs are $39,000. The fixed and variable cost estimates are considered accurate within a range of Plus or minus 2 percent.The sales price is estimated at $36 a unit, plus or minus 1 percent. The discount rate is 16 percent, and the tax rate is 21 percent. What is the net income under the pessimistic case scenario?Multiple Choice$241,048.60 $281,980.75 $302,047.02 $292,966.76 $297,182.44

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