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You are considering a new product launch. The project will cost $1,750,000, have a four-year...

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Accounting

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You are considering a new product launch. The project will cost $1,750,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 190 units per year; price per unit will be $17,300, variable cost per unit will be $10,400, and fixed costs will be $515,000 per year. The required return on the project is 12%, and the relevant tax rate is 35%.Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within +10 percent. What is the base-case NPV? What are the best-case NPV and worst-case NPV? In the previous question, what is the cash break-even level of output for this project (ignoring taxes)? O A. 47.29 B.51.83 C. 66.38 D. 74.64 O E. 83.62

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