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We are evaluating a project that costs $837,715, has an eight-year life, and has no salvage...

We are evaluating a project that costs $837,715, 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 64,349 units per year. Price per unit is $38, variable cost per unit is $21, and fixed costs are $421,878 per year. The tax rate is 35%, and we require a return of 20% on this project.

What is the NPV of this base-case?

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jeff jeffy answered 2 hours ago
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