We are evaluating a project that costs $950,000, has an thirteen-year life, and has no...
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We are evaluating a project that costs $950,000, has an thirteen-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 143,000 units per year. Price per unit is $40, variable cost per unit is $27, and fixed costs are $957,600 per year The tax rate is 31 percent, and we require a 15 percent return on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 14 percent. Required: (a) Calculate the best-case NPV. (Do not round your intermediate calculations.) (Click to select) (b) Calculate the worst-case NPV. (Do not round your intermediate calculations.) (Click to select)
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