Question: The project under consideration costs $200,000, has a five-year life, and has no salvage value. Depreciation is straight-line to zero. The required return is 16

The project under consideration costs $200,000, has a five-year life, and has no salvage value. Depreciation is straight-line to zero. The required return is 16 percent, and the tax rate is 30 percent. In addition, we have compiled the following information:
At 16 percent interest rate, Whats the five-year annuity factor?
Group of answer choices
0.85
3.14
3.27
4.31
 The project under consideration costs $200,000, has a five-year life, and
Whats the base-case NPV?
Group of answer choices
-530
-445
347
619

Base Case 6,000 $80 Lower Bound 5,500 $75 $58 Upper Bound 6,500 $85 Unit sales Price per unit Variable costs per unit Fixed costs per year $60 $62 $50,000 $45,000 $55,000

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