A) We are evaluating a project that costs $115571, has a seven-year life, and has no...

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A) We are evaluating a project that costs $115571, has aseven-year life, and has no salvage value. Assume that depreciationis straight-line to zero over the life of the project. Sales areprojected at 4293 units per year. Price per unit is $45, variablecost per unit is $25, and fixed costs are $81427 per year. The taxrate is 35 percent, and we require a 8 percent return on thisproject. Suppose the projections given for price, quantity,variable costs, and fixed costs are all accurate to within +/-8percent. What is the NPV of the project in best-case scenario?(Negative amount should be indicated by a minus sign. Roundyour final answer to the nearest dollar amount. Omit the "$" signand commas in your response. For example, $123,456.78 should beentered as 123457.)
B)We are evaluating a project that costs$117027, has a seven-year life, and has no salvage value. Assumethat depreciation is straight-line to zero over the life of theproject. Sales are projected at 4144 units per year. Price per unitis $52, variable cost per unit is $28, and fixed costs are $82376per year. The tax rate is 39 percent, and we require a 13 percentreturn on this project. Suppose the projections given for price,quantity, variable costs, and fixed costs are all accurate towithin +/-10 percent. What is the NPV of the project in worst-casescenario? (Negative amount should be indicated by a minussign. Round your final answer to the nearest dollar amount. Omitthe "$" sign and commas in your response. For example, $123,456.78should be entered as 123457.)

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Transcribed Image Text

A) We are evaluating a project that costs $115571, has aseven-year life, and has no salvage value. Assume that depreciationis straight-line to zero over the life of the project. Sales areprojected at 4293 units per year. Price per unit is $45, variablecost per unit is $25, and fixed costs are $81427 per year. The taxrate is 35 percent, and we require a 8 percent return on thisproject. Suppose the projections given for price, quantity,variable costs, and fixed costs are all accurate to within +/-8percent. What is the NPV of the project in best-case scenario?(Negative amount should be indicated by a minus sign. Roundyour final answer to the nearest dollar amount. Omit the "$" signand commas in your response. For example, $123,456.78 should beentered as 123457.)B)We are evaluating a project that costs$117027, has a seven-year life, and has no salvage value. Assumethat depreciation is straight-line to zero over the life of theproject. Sales are projected at 4144 units per year. Price per unitis $52, variable cost per unit is $28, and fixed costs are $82376per year. The tax rate is 39 percent, and we require a 13 percentreturn on this project. Suppose the projections given for price,quantity, variable costs, and fixed costs are all accurate towithin +/-10 percent. What is the NPV of the project in worst-casescenario? (Negative amount should be indicated by a minussign. Round your final answer to the nearest dollar amount. Omitthe "$" sign and commas in your response. For example, $123,456.78should be entered as 123457.)