Question: we are evaluating a project that cost $690,000, has a five-yeqar life, and has no salvage value. assume that depreciation is straight line to zero
we are evaluating a project that cost $690,000, has a five-yeqar life, and has no salvage value. assume that depreciation is straight line to zero over the project. sales are projected at $71000 units per year. prices per unit is $75, variable cost per unit $50 and fixed cost are $790000 per year. The tax rate is 35% and are are require a return of 15% on this project. suppose the projections given for price, quantity, variable cost, and fixed costs are all accurate to within = or - 10% what are the worse and best case npv
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