subject
Business, 06.05.2020 06:58 vkrizh

We are evaluating a project that costs $2,070,000, has a 7-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 93,400 units per year. Price per unit is $38.73, variable cost per unit is $23.85, and fixed costs are $854,000 per year. The tax rate is 23 percent, and we require a return of 10 percent on this project.

Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +10 percent. Calculate the best-case and worst-case NPV figures.

Best-case NPV:
Worst-case NPV:

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 20:40
Which of the following actions is most likely to result in a decrease in the money supply? a. the discount rate on overnight loans is lowered. b. the government sells a new batch of treasury bonds. c. the federal reserve bank buys treasury bonds. d. the required reserve ratio for banks is decreased. 2b2t
Answers: 2
question
Business, 22.06.2019 01:30
Iam trying to get more members on my blog. how do i do that?
Answers: 2
question
Business, 23.06.2019 00:30
Emerson has an associate degree based on the chart below how will his employment opportunities change from 2008 to 2018
Answers: 3
question
Business, 23.06.2019 01:00
What is the average price for the cordless telephones (to 2 decimals)? $ b. what is the average talk time for the cordless telephones (to 3 decimals)? hours c. what percentage of the cordless telephones have a voice quality of excellent? % d. what percentage of the cordless telephones have a handset on the base?
Answers: 3
You know the right answer?
We are evaluating a project that costs $2,070,000, has a 7-year life, and has no salvage value. Assu...
Questions
Questions on the website: 13722360