We are examining a new project. We expect to sell 5,800 units per year at $72...

a. What is the base-case NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV $=

b. After the first year, the project can be dismantled and sold for $1,520,000. If expected sales are revised based on the first year’s performance, below what level of expected sales would it make sense to abandon the project? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

For part b Calculator or written break down solution please

Level of expected sales units=

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jeff jeffy answered 1 year ago

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