Question: We are evaluating a project that costs $ 9 1 6 , 0 0 0 , has a life of eleven years, and has no

We are evaluating a project that costs $916,000, has a life of eleven years, and has no salvage value. Assume that depreclation is strolght-line to zero over the life of the project. Sales are projected at 93,000 units per year. Price per unit is $36, varlable cost per unit is $27, and fixed costs are $926,076 per year. The tax rate is 24 percent, and we require a return of 18 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-20 percent.
a. Calculate the best-case NPV.
b. Calculate the worst-case NPV,
We are evaluating a project that costs $ 9 1 6 ,

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