Question: Help Save & Exit A project requires an initial investment of $10,000, straight-line depreciable to zero over four years. The discount rate is 10%. Your

 Help Save & Exit A project requires an initial investment of
$10,000, straight-line depreciable to zero over four years. The discount rate is

Help Save & Exit A project requires an initial investment of $10,000, straight-line depreciable to zero over four years. The discount rate is 10%. Your tax bracket is 34% and you receive a tax credit for negative earnings in the year in which the loss occurs. Additional information for variables with forecast error are shown below. Unit Sales Price/unit Variable cost/unit Fixed costs Base Case 3,000 $14 $90 $9,000 Lower Bound 2,750 $13 $8 $8.500 Upper Bound 3,250 $16 $10 $10,000 What is the base case NPV for the project? Multiple Choice O $1,523 $4,974 Multiple Choice O $1,523 $4,974 $6,529 $5,247 $8.281

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