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Question #1:We are evaluating a project that costs $644,000, has an eight-year life, and has no...

Question #1:We are evaluating a project that costs $644,000, has an eight-year life, and has no salvage value. Assume that deprecation is straight-line to zero over the life of the project. Sales are projected at 70,000 units per year. Price per unit is $37, variable cost per unit is $21, and fixed costs are $725, 000 per year. The tax rate is 35% and we require a 15 percent return on this project.
d) Suppose projections give for price, quantity, variable costs , and fixed costs are accurate to within +/- 10 percent. Calculate the "best" and "worst" case scenario.

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jeff jeffy answered 6 months ago
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