Question: Problem 5 Intro Consider a project with a 4-year life. The initial cost to set up the project is $100.000 This amount is to be

 Problem 5 Intro Consider a project with a 4-year life. The

Problem 5 Intro Consider a project with a 4-year life. The initial cost to set up the project is $100.000 This amount is to be nearly depreciated to zero over the le of the project and there is no sava value the required returns 10% and the tax rate is 34% You've collected the following estimates Base case Pessimistic Optimistic Unit sales per yew ) 7000 5000 9.000 Price per unit (P) 50 Variable cost per unit (VC) 20 Fored costs per year (FC) 30.000 50,000 20 000 IB A 1/10 for 10 pts Part 1 What is the annual cash flow from assets in the base case D+ decimals Submit Part 2 A m 1/10 for 10 pts What is the NPV in the base case? 0+ decimals B A 110 for 10 pts Part 3 What is the NPV in the pessimistic case? B o m 110 for 10 pts Part 4 What is the NPV in the optimistic case? Subma

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