Problem $2,$Question $1$

A firm with WACC $10\%($i$.$e$.,$ your discount rate$)$ and tax rate $20\%$ evaluates a one$-$year investment plan that requires an

initial investment of $$20,000.$ Half of this cost can be depreciated during the lifetime of the project. The project will allow the

firm to offer a limited edition product that is expected to sell $10,000$ units for $$4$ each over the next year. The variable cost

is $$\frac{1}{?}$ unit.

What is the NPV of the project?

a$.26,000$

b$.1,818$

c$.3,636$

d$.10,909$

e$.6,000$

f$.7,272$

g$.5,454$

h$.3,333$