Question: you are considering a new product launch. The project will cost $2,025,000,have a four year life,and have no salvage value;depreciation is straight line to zero.

you are considering a new product launch. The project will cost $2,025,000,have a four year life,and have no salvage value;depreciation is straight line to zero. Sales are projected at 200 units per year;price per unit will be $18900,variable cost per unit will be $12,050,and fixed costs will be $590,000 per year. the required return on the project is 11 percent,and the relevant tax rate is 23 percent. Based on your experience,you think the unit sales,variable cost,and fixed cost projections given here are probably accurate to within +_10 percent.what are the upper and lower bounds for these projections?whatvis the best case and worse case scenarios.

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