Question: You are considering a new product launch. The project will cost $ 1 , 7 0 0 , 0 0 0 , have a four

You are considering a new product launch. The project will cost $ 1,700,000,have a four - year life, and have no salvage value; depreciation is straight - line to zero. Sales are projected at 140units per year; price per unit will be $ 22,000,variable cost per unit will be $ 12,500,and fixed costs will be $ 490,000per year. The required return on the project is 10percent, and the relevant tax rate is 21percent. a -1.The unit sales, variable cost, and fixed cost projections given above are probably accurate to within \ pm 10percent. What are the upper and lower bounds for these projections? What is the base - case NPV ?What are the best - case and worst - case scenarios? ( Do not round intermediate calculations and round your answers to the nearest whole number, e . g .,32.) a -2.What is the base - case NPV ?What are the best - case and worst - case scenarios? ( A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2decimal places, e . g .,32.16.) b .Calculate the sensitivity of your base - case NPV to changes in fixed costs. ( A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 3decimal places, e . g .,32.161.) c .What is the accounting break - even level of output for this project? ( Do not round intermediate calculations and round your answer to 2decimal places, e . g .,32.16.)

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