Fox Co. is considering an investment that will have the
following sales, variable costs, and fixed operating costs:
Year 1
Year 2
Year 3
Year 4
Unit sales
4,200
4,100
4,300
4,400
Sales price
$29.82
$30.00
$30.31
$33.19
Variable cost per unit
$12.15
$13.45
$14.02
$14.55
Fixed operating costs
$41,000
$41,670
$41,890
$40,100
This project will require an investment of $10,000 in new
equipment. Under the new tax law, the equipment is eligible for
100% bonus deprecation at t =...