You are considering a new product launch the project will

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You are considering a new product launch. The project will cost $950,000 and have a four year life with no salvage value. Assets for the project are depreciated straight line down to zero. Projected sales are 220 units per year. The price per unit is $18,400 while variable cost per unit is $14,900. Fixed costs per year are $320,000. The firms relevant tax rate is 35% and they require a 12% return. How much value does this project generate for the firm if accepted?

Reference no: EM13606193

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