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Business, 05.11.2019 03:31 bs036495

We are evaluating a project that costs $520,000, has a six-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 65,000 units per year. price per unit is $45, variable cost per unit is $30, and fixed costs are $840,000 per year. the tax rate is 35 percent, and we require a return of 10 percent on this project. suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. calculate the best-case and worst-case npv figures. (a negative answer should be indicated by a minus sign. do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)

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We are evaluating a project that costs $520,000, has a six-year life, and has no salvage value. assu...

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