We are evaluating a project that costs $974,000, has a twelve-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 119,000 units per year. Price per unit is $43, variable cost per unit is $28, and fixed costs are $988,610 per year. The tax rate is 36 percent, and we require a 16 percent return on this project.

We are evaluating a project that costs $974,000, has a twelve-year life, and has no salvage value. Assume e to zero over the life of the project. Sales are p d at 119,000 units per year. Price per unit is $43, variable cost per unit is $28, and fixed costs are $988,610 per year. The tax rate is 36 percent, and we require a 16 percent return on this project