Question: We are evaluating a project that costs $997,000, has a life of thirteen years, and has no salvage value. Assume that depreciation is straight-line to

We are evaluating a project that costs $997,000, has a life of thirteen years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 150,000 units per year. Price per unit is $42, variable cost per unit is $28, and fixed costs are $1,010,958 per year. The tax rate is 22 percent, and we require a return of 12 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 11 percent. b. Calculate the worst-case NPV
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