We are evaluating a project that costs $101,421, has a seven-year life, and has no salvage...

We are evaluating a project that costs $101,421, has a seven-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 4,240 units per year. Price per unit is $55, variable cost per unit is $26, and fixed costs are $83,123 per year. The tax rate is 35 percent, and we require a 13 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-8 percent. What is the NPV of the project in best-case scenario?

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jeff jeffy answered 5 months ago

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