A project has an initial cost of $46,000 for equipment, which will be depreciated straight-line to zero over the four-ye

[answerhappygod]

A Project Has An Initial Cost Of 46 000 For Equipment Which Will Be Depreciated Straight Line To Zero Over The Four Ye 1 (51.02 KiB) Viewed 30 times

A project has an initial cost of $46,000 for equipment, which will be depreciated straight-line to zero over the four-year life of the project. There is no salvage value on the equipment. No working capital is required. Sales are estimated at 10,000 units at a selling price of $22.50 per unit. Variable costs are $14.75 and fixed costs are $56,500. The tax rate is 34% and the required rate of return is 10%. For every $1 increase in the variable cost per unit the net present value will: Multiple Choice Decrease by $10,593. Decrease by $264. Decrease by $20,922. Increase by $264. Increase by $10,593.