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
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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