Question: Problem 9-21 Scenario Analysis [LO 3] We are evaluating a project that costs $1,920,000, has a 6-year life, and has no salvage value. Assume that

Problem 9-21 Scenario Analysis [LO 3] We are evaluating a project that costs $1,920,000, has a 6-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 94,500 units per year. Price per unit is $38.43, variable cost per unit is $23.60, and fixed costs are $839,000 per year. The tax rate is 23 percent and we require a return of 12 percent on this project.

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