Question: We are evaluating a project that costs $2,070,000, has a 7-year life, and has no salvage value. Assume that depreciation is straight-line to zero over
We are evaluating a project that costs $2,070,000, has a 7-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 93,400 units per year. Price per unit is $38.73, variable cost per unit is $23.85, and fixed costs are $854,000 per year. The tax rate is 23 percent, and we require a return of 10 percent on this project. o. Calculate the base-case operating cash flow and NPV. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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