Question: wan value 1.00 points Problem 9-19 Scenario Analysis [LO 3) We are evaluating a project that costs $1,200,000, has a five-year life, and has no
wan value 1.00 points Problem 9-19 Scenario Analysis [LO 3) We are evaluating a project that costs $1,200,000, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sam projected at 88,500 units per year. Price per unit is $35.00, variable cost per unit is $21.25, and fixed costs are $765,000 per year. The tax rate is 35 percent, and we require an percent on this project Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 10 percent. Calculate the best-case and worst-Case NPV figures. (A answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) OCF NPV Best-case $ $ Worst-case $ $ References eBook & Resources Worksheet Difficulty: 1 Basic Section: 9.3 Pro Forma Financial Statements and Project Cash Flows Section: 9.6 Scenario and Other What if Analyses Problem 9-10 Scenario Analysis [LO 3] Learning Objective: 09-03 Evaluate an estimated NPV. Check my work 1.00 points Problem 9-19 Scenario Analysis [LO 3] We are evaluating a project that costs $1,200,000, has a five-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 88,500 units per year. Price per unit is $35.00, variable cost per unit is $21.25, and fixed costs are 5765,000 per year. The tax rate is 35 percent, and we require a return of 10 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 10 percent. Calculate the best-case and worst-case NPV figures. (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answers to 2 decimal places, ... 32.16.) NPV Best-case $ $ Worst-case $ $ OCF References eBook & Resources Worksheet Difficulty: 1 Basic Section: 9.3 Pro Forma Financial Statements and Project Cash Flows Section: 06 Scenario and Other What if Analyses Problem 9-19 Scenario Analysis [LO 3] Leaming Objective: 09-03 Evaluate an estimated NPV Check my work
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