Question: We are evaluating a project that costs $1,860,000, has a 6 -year life, and has no salvage value. Assume that depreciation is straight-line to zero
We are evaluating a project that costs $1,860,000, has a 6 -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 89,300 units per year. Price per unit is $38.31, variable cost per unit is $23.50. and fixed costs are $833,000 per year. The tax rate is 21 percent and we require a return of 9 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. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.9., 32.16
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