Question: You are considering a new product launch. The project will cost $960,000 have a four year life, and have no salvage value; depreciation is straight

You are considering a new product launch. The project will cost $960,000 have a four year life, and have no salvage value; depreciation is straight line to zero. Sales are projected at 240 units per year; price unit will be $25,000 variable cost per unit will be $19,500 and fixed cost will be $830,000 per year. The required return on this project is 15 percent and the relevant tax rate is 35 percent. A. 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? What is the base case NPV? What are the base case and worse

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