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 $20, 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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