Solution-Calculate best-case-worst-case npv figures

Calculate best-case-worst-case npv figures

Reference no: EM131066583

We are evaluating a project that costs $500,000, 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 50,000 units per year. Price per unit is $40, variable cost per unit is $25, and fixed costs are $600,000 per year. The tax rate is 35 percent, and we require a 12 percent return 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.

Reference no: EM131066583

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Calculate best-case-worst-case npv figures

Reference no: EM131066583

Reference no: EM131066583

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