Question: We are evaluating a project that costs $ 9 4 0 , 0 0 0 , will last for seven years, and has no salvage
We are evaluating a project that costs $ will last for seven years, and has no salvage value. The equipment will be depreciated in a straightline manner over the projects life. Sales will be units per year. The price per unit is $ variable cost per unit is $ and fixed costs are $ per year. The tax rate is percent, and the required return is percent. Suppose the projections for price, quantity, variable costs, and fixed costs are accurate to percent. What are the bestcase and worstcase NPVs for this project?
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