We are evaluating a project that costs \\( \\$ 670,000 \\), has a life of...

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Finance

image We are evaluating a project that costs \\( \\$ 670,000 \\), has a life of 5 years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 59,000 units per year. Price per unit is \\( \\$ 44 \\), variable cost per unit is \\( \\$ 25 \\), and fixed costs are \\( \\$ 760,000 \\) per year. The tax rate is 23 percent, and we require a return of 16 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within \\pm 10 percent. Calculate the best-case and worst-case NPV figures. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

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