Question: What is the base case NPV for the project? What is the worst case NPV for the project? What is the best case NPV for

 What is the base case NPV for the project? What is

What is the base case NPV for the project? What is the worst case NPV for the project? What is the best case NPV for the project? What is the base case accounting break even point? What is the base case cash break even point? What is the base case financial break even point (ignore taxes) ?

A project requires an initial investment of $10,000, straight-line depreciable to zero over 4 years. The discount rate is 10%. Your tax bracket is 34% and you receive a tax credit for negative earnings in the year in which the loss occurs. Additional information for variables with forecast error are shown below. Base Case 3,000 $14 $9 $9,000 Lower Bound 2,750 $13 Unit Sales Price/unit Variable cost/unit Fixed costs Upper Bound 3,250 $16 $10 $10,000 $8 $8,500 What is the base case NPV for the project? 1523 4974 5247 6529 8281 A project requires an initial investment of $10,000, straight-line depreciable to zero over 4 years. The discount rate is 10%. Your tax bracket is 34% and you receive a tax credit for negative earnings in the year in which the loss occurs. Additional information for variables with forecast error are shown below. Base Case 3,000 $14 $9 $9,000 Lower Bound 2,750 $13 Unit Sales Price/unit Variable cost/unit Fixed costs Upper Bound 3,250 $16 $10 $10,000 $8 $8,500 What is the base case NPV for the project? 1523 4974 5247 6529 8281

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