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We are evaluating a project that costs $702,000, has a life of ten years, and...

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Accounting

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We are evaluating a project that costs $702,000, has a life of ten years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 116,000 units per year. Price per unit is $44, variable cost per unit is $21, and fixed costs are $704,808 per year. The tax rate is 22 percent, and we require a return of 17 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 16 percent a. Calculate the best-case NPV. Best case

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