Question: We are evaluating a profect that costs $ 3 , 3 0 0 , 0 0 0 , has a 3 - year ife, and

We are evaluating a profect that costs $3,300,000, has a 3-year ife, and has no savage value. Assume that depreciation is straight:Ine to zero over the life of the project. Sales are projected at 140,000 unts per year. Price per unit is $43, varlable cost per unit is $25, and fred costs are $750,000 per year. The taxx rate is 22 percent, and we require a return of 14 percent on this project. Suppose the projections given for price, quantity, variable costs, and fied costs are all accurate to within plus minus 20 percent. Cakulate the base-case, worst-case, and best-case NPV figures.
Maltiple Choice
$1572300,-$2776,004,$3,709525
$467,080,-53,475,557,$5788,874
$74300,-52770.00t,53700.525
5067006,-52,45,553,54,73104
We are evaluating a profect that costs $ 3 , 3 0

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