Question: can you please help me answer this question We are evaluating a project that costs $725,000, has a life of eight years, and has no
We are evaluating a project that costs $725,000, has a life of eight years, and has no salvage value. Assume that depreciation is-straight-line to zero over the life of the project. Sales are projected at 149,000 units per year. Price per unit is $41, variable cost per unit is $21, and fixed costs are $728,625 per year. The tax rate is 22 percent, and we require a return of 21 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/16 percent. a. Caiculate the best-case NPV Best case b. Calculate the worst-case NPV
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
