Question: We are evaluating a project that costs $ 2 , 0 4 0 , 0 0 0 , has a 7 year i . ie

We are evaluating a project that costs $2,040,000, has a 7 year
i.ie, and has no salvige value. Assume that depreciation is straightiline to zero over the life of the project. Sales are projected at 8900 units per yeac. Pise per unit is $38.67, varlable cost per unit is $23.80, and foed costs are $851,000 per yea. The tax rate is 22 percent and we reoule a retum of 12 percent on this project. Suppose the projections glven for price, quanticy, variable costs, and flued costs are all sccurnte so within 210 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.
\table[[Best-case NPY,5,2.9430959
We are evaluating a project that costs $ 2 , 0 4

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