B D E Chapter 9 Question 27 Read prob 27, page 307. See the data below. Work out the cases and answer the questison in the box below too. 10 points Input area: Project cost $ 780,000 Unit sales 170 Price per unit $ 16,300 Variable cost per unit $ 11,100 Fixed costs 535,000 Required return 11% Tax rate 21% Unit sales uncertainty 10% Price uncertainty 0% Variable cost uncertainty 10% Fixed costs uncertainty 10% b. New fixed costs $ 545,000 Using the conditions above; calcualte the Base; Best; worst case scenairo, using the template below. Do yourecommend that the project go ahead, given the best and worst cases? Why? How confident do you feel about the estimates? Explain What are the risks you see? Explain a. F LL C A eady a. x fx 8 Sheet1 C Units sales Price per unit Variable cost per unit Fixed costs Sales Variable costs Fixed costs Depreciation EBIT Taxes Net income OCF Cash flows NPV Sheet2 101234 0 Sheet3 D Base case + E Best Case Worst Case G