Question: We are evaluating a project that costs $722,000, has a 9-year life, and has no salvage value. Assume depreciation is straight-line to zero over the
We are evaluating a project that costs $722,000, has a 9-year life, and has no salvage value. Assume depreciation is straight-line to zero over the life of the project Sales are projected at 55.750 units per year, the price per unit is $25.35, variable cost per unit is $16.90, and fixed costs are $206,285 per year. The tax rate is 35 percent and we require a return of 10.0 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within t 2.5 percent. What is the worst-case NPV? $133,002 $137,929 $152,641 $147,873 $142,579
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