Question: We are evaluating a project that costs$675411, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the
We are evaluating a project that costs$675411, has a five-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 47603 units per year. Price per unit is $48, variable cost per unit is $21, and fixed costs are $529843 per year. The tax rate is 30%, and we require a return of 17% on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 10 percent.
What is the Worst Case NPV?Answer 77530.61 please show all work so I can figure out where I went wrong in my calculations
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
