Question: P11-6 Scenario Analysis (LO2] We are evaluating a project that costs $811,000, has a life of nine years, and has no salvage value. Assume that
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P11-6 Scenario Analysis (LO2] We are evaluating a project that costs $811,000, has a life of nine years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project Sales are projected at 120,000 units per year. Price per unit is $39, variable cost per unit is $28, and fixed costs are $811,811 per year. The tax rate is 24 percent, and we require a return of 18 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 18 percent. a. Calculate the best-case NPV. b. Calculate the worst-case NPV
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