We are evaluating a project that costs $874,800, has a nine-year life, and has no salvage...

We are evaluating a project that costs $874,800, has a nine-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 85,000 units per year. Price per unit is $55, variable cost per unit is $39, and fixed costs are $765,000 per year. The tax rate is 24 percent, and we require a return of 11 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.

Round to two decimal places.

best case npv and worst case npv

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jeff jeffy answered 1 year ago

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We are evaluating a project that costs $874,800, has a nine-year life, and has no salvage...

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