Question: We are evaluating a project that cost $500,000, has a eight year life, and has no salvage value. Assume that depreciation is straight-line to zero
We are evaluating a project that costs $500,000, has an eight-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 50,000 units per year. Price per unit is $40. variable cost per unit is $25, and fixed costs are $600,000 per year. The tax rate is 35 percent, and we require a 12 percent return on this project Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 110 percent. Calculate the best-case and worst-case NPV figures. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) NPV Best-case Worst-case
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