Question: Intro Consider a project with a 6-year life. The initial cost to set up the project is $100,000. This amount is to be linearly
Intro Consider a project with a 6-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated to zero over the life of the project and there is no salvage value. The required return is 15% and the tax rate is 34%. The price per unit is $50, variable costs are $20 per unit and fixed costs are $30,000 per year. You've collected the following estimates for unit sales: Base case Pessimistic Optimistic Unit sales per year (Q) 8,000 Part 1 What is the NPV in the base case? 0+ decimals Submit Part 2 What is the NPV in the pessimistic case? 0+ decimals Submit 6,000 10,000 Attempt 3/3 for 9 pts. Attempt 2/3 for 9.5 pts. Part 3 What is the NPV in the optimistic case? 0+ decimals Attempt 1/3 for 10 pts. Submit
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