Question: We are evaluating a project that costs $854,000, has a 15-year life, and has no salvage value. Assume that depreciation is straight- line to zero

We are evaluating a project that costs $854,000, has a 15-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 154,000 units per year. Price per unit is $41, variable cost per unit is $20, and fixed costs are $865,102 per year. The tax rate is 33 percent, and we require a 14 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 14 percent. What is the worst-case NPV? Multiple Choice $1,993,870 $984,613 O $1,489,511 O $1,782,409
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