Question: Tom is evaluating a project that costs $950,000, has a 5-year life, and has no savage value. assumed it appreciation is straight line to zero
Tom is evaluating a project that costs $950,000, has a 5-year life, and has no savage value. assumed it appreciation is straight line to zero over the life of the project. sales are projected at 90,000 units per year, price per unit is $65, variable cost per unit are $30, and fixed cost or $2 million per year. The tax rate is 21%, and the required rate of return on the project is 12%. suppose the projections given for price, quantity, VC per unit, in FC or accurate within +/- 15%. calculate the best case in NPV
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