We are evaluating a project that costs $872,000, has an eight-year life, and has no salvage value. Assume that depreciat

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We Are Evaluating A Project That Costs 872 000 Has An Eight Year Life And Has No Salvage Value Assume That Depreciat 1 (167.12 KiB) Viewed 16 times

We are evaluating a project that costs $872,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight- line to zero over the life of the project. Sales are projected at 75,000 units per year. Price per unit is $53, variable cost per unit is $33, and fixed costs are $769,000 per year. The tax rate is 35%, and we require a 10% return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +10%. Calculate the best-case and worst-case NPV figures. (Omit $ sign in your response. Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places.). Best-case NPV Worst-case NPV es is $ $