We project unit sales for a new household-use laser-guided cockroach search and destroy system as follows:...

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We project unit sales for a new household-use laser-guided cockroach search and destroy system as follows: Year 1 2 3 4 5 Unit Sales 98,000 110,000 133,000 139,000 92,000 The new system will be priced to sell at $445 each. The cockroach eradicator project will require $1,600,000 in net working capital to start, and total net working capital will rise to 15% of the change in sales. The variable cost per unit is $315, and total fixed costs are $1,900,000 per year. The equipment necessary to begin production will cost a total of $19 million. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of 20%. In five years, this equipment will actually be worth about 20% of its cost. The relevant tax rate is 35%, and the required return is 17%. Based on these preliminary estimates, what is the NPV of the project? (Enter the answer in dollars. Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ We project unit sales for a new household-use laser-guided cockroach search and destroy system as follows: Year 1 2 3 4 5 Unit Sales 98,000 110,000 133,000 139,000 92,000 The new system will be priced to sell at $445 each. The cockroach eradicator project will require $1,600,000 in net working capital to start, and total net working capital will rise to 15% of the change in sales. The variable cost per unit is $315, and total fixed costs are $1,900,000 per year. The equipment necessary to begin production will cost a total of $19 million. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of 20%. In five years, this equipment will actually be worth about 20% of its cost. The relevant tax rate is 35%, and the required return is 17%. Based on these preliminary estimates, what is the NPV of the project? (Enter the answer in dollars. Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $

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Lets calculate the NPV of the project using the given information Year 1 Revenue 98000 445 43810000 Fixed Costs 1900000 Variable Costs 98000 315 30870... View the full answer