Calculate best-case and worst-case npv figures

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Reference no: EM131058256

We are evaluating a project that costs $816,000, has a 12-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 83,000 units per year. Price per unit is $40, variable cost per unit is $20, and fixed costs are $828,240 per year. The tax rate is 38 percent, and we require a 10 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-13 percent. Calculate the best-case and worst-case NPV figures.

Reference no: EM131058256

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