Problem 12 IB- Attempt 1/5 for 10 pts Part 2 What is the NPV in the base case? 0+ decimals Intro Consider a project with a 3-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% Submit You've collected the following estimates: IB- Attempt 1/5 for 10 pts. Base case Pessimistic Optimistic Unit sales per year (Q) 8.000 6,000 10,000 Price per unit (P) 50 40 60 Variable cost per unit (VC) 20 35 15 Fixed costs per year (FC) 30,000 50,000 20,000 Part 3 What is the NPV in the pessimistic case? 0+ decimals Submit IB Attempt 1/5 for 10 pts Part 1 What is the annual incremental cash flow in the base case? Attempt 1/5 for 10 pts Part 4 What is the NPV in the optimistic case? 0+ decimals Submit 0+ decimals Submit