Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. we are evaluating a project that costs $679,903, h

We are evaluating a project that costs $679,903, has a five-year life, and has no...

90.2K

Verified Solution

Question

Finance

image

We are evaluating a project that costs $679,903, has a five-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 45,668 units per year. Price per unit is $46, variable cost per unit is $23, and fixed costs are $526,682 per year. The tax rate is 30%, and we require a return of 21% on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within \pm 10 percent. What is the Best Case NPV? (Round answer to 0 decimal places. Do not round intermediate calculations)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students