Question: We are evaluating a project that costs $ 1 , 1 6 0 , 0 0 0 , has a ten - year life, and

We are evaluating a project that costs $1,160,000, has a ten-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 39,000 units per year. Price per unit is $41, variable cost per unit is $20,
and fixed costs are $645,000 per year. The tax rate is 35 percent, and we require a
return of 20 percent on this project. Suppose the projections given for price, quantity,
variable costs, and fixed costs are all accurate to within \pm 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, e.g.,32.16.)
 We are evaluating a project that costs $1,160,000, has a ten-year

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